Today we explain Ethereum price prediction after merge. The long-awaited upgrade to Ethereum (ETH), also known as “the merge” and “Ethereum 2.0,” may be the most significant development in the cryptocurrency markets this year.
The last stage of the merger will start soon since a significant network upgrade for the top altcoin is set to start in the middle of September.
The volume of ETH derivatives trading has increased over August by 10% in anticipation. In terms of derivatives volume, the No. 2 cryptocurrency even beat Bitcoin.
According to some observers, the merger may reduce the overall supply of Ethereum, increasing the value of the cryptocurrency for those who currently own it. The days leading up to the Ethereum 2.0 changeover have been very volatile and exciting as a result of these variables. Over the last five days, the top altcoin has increased by almost 15%, reaching almost INR 1,30,990.
Why is Ethereum going up?
The price of Ethereum has been progressively rising as the major upgrade draws near.
Some of the excitement surrounding ETH is centered on the cryptocurrency’s potential, with investors viewing the token as a buy-and-hold investment with potential for future gains.
In the middle of August, the price of ethereum rose to about INR 1,33,528 before quickly falling between August 25 and August 29. The news of a few merge-related problems and the Federal Reserve’s affirmation at Jackson Hole of its intentions to battle inflation with higher interest rates both contributed to a decline in the price of ETH during that time.
Following its bottom on June 18, when ETH sank to its 52-week low of roughly INR 89,499, Ethereum experienced a late-summer bounce.
ETH experienced a more than 70% decline from April to June, falling below the crucial INR 79,872 threshold in June.
Over the same time span, Bitcoin (BTC) only fell by 52%, bottoming out in June at about INR 16,91,939. Since then, BTC has increased by 15%, reaching around INR 15,97,442. Since its own bottom, ETH has increased by more than 82%, regaining the INR 127,795 mark.
Ethereum price prediction after merge
Although the integration has been planned for years, no one is really certain how users will be affected by Ethereum 2.0. In the history of cryptocurrency, very few changes of this magnitude have ever been tried.
Ethereum will change from a proof-of-work protocol to a proof-of-stake one as a result of the merge. In the former, new blocks are added to the blockchain using cryptocurrency miners, whereas in the latter, new blocks are added to the network by validators who stake ETH.
The system’s Beacon Chain and Ethereum’s Mainnet will be combined to implement this proof of stake conversion. Since December 2020, this proof-of-stake chain has been active on the Ethereum network. The integration began with the Beacon Chain being launched.
The Bellatrix upgrade for Ethereum will come next on September 6. Around September 15, implementation of the process’ last step, known as the Paris upgrade, should start.
Many cryptocurrency insiders are of the opinion that investors should anticipate to see favorable returns as a result of the integration, so long as nothing too disruptive occurs during the upgrade process.
It’s still incredibly difficult to update a complete blockchain protocol when it’s being heavily used. On the Ethereum network, 1.3 million transactions are reportedly made per day.
Co-founder and chief investment officer of IDX Digital Assets, Ben McMillan, claims that the merger is receiving strong support from the options markets. However, he also expresses concern that there may be a “buy the rumor, sell the news” mindset in play, which could lower the price of Ethereum in the immediate aftermath of the merger.
If all goes according to plan, some investors may decide to sell their positions after the merger is completed. After the merger, some investors might think they’ve already profited from it, in which case they might sell their holdings and push the price down temporarily.
Although many traders will “certainly sell on news of the merger,” Anthony Scaramucci, founder and managing partner at global asset management firm Skybridge Capital, cautioned against that, saying Ethereum was a wonderful long-term investment.
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