As the big event of the Ethereum merge comes closer, the crypto market is prepping to increase in prices. Ethereum specifically reached an important price as its uptrend comes to a slight halt. Crypto investors are eyeing the entire Ethereum ecosystem and community to make their investment decisions. Where will Ethereum price reach after the merge? Is it a good idea to buy Ether before the merge? Let’s assess in this Ethereum price prediction 😉
What is Ethereum Blockchain?
Ethereum is a decentralized blockchain platform that creates a peer-to-peer network for safely executing and validating smart contract application code. Participants can do business with one another using smart contracts without the need for a reliable central authority. Participants have complete ownership and visibility over transaction data since transaction records are immutable, verifiable, and securely disseminated across the network. Ethereum accounts that users have created both send and receive transactions. As a cost of executing transactions on the network, a sender must sign transactions and use Ether, Ethereum’s native coin.
Why did Ethereum Fork?
Ethereum underwent a “merge” process back in July 2016. It basically resulted in the creation of a new blockchain. This was a landmark moment in the blockchain world and shows Ethereum’s commitment to innovation and improving its overall user experience.
A proposal was made on the Github repository for Parity Technologies – a distributed team of developers and researchers who develop software for Ethereum technology. This proposal was to merge the Ethereum and Geth codebases together in order to eliminate vulnerabilities and improve the codebase overall. After months of planning on July 20th, the merge took place and the new merged chain was named Ethereum 2.0.
What is Ethereum Merge?
Ethereum blockchain currently runs thanks to the proof-of-work consensus. It basically manages all the transactions on the blockchain through an extensive mechanism. The merge accounts for the switch to the proof-of-stake consensus, which is muchly sustainable.
Is the Ethereum Merge good for Ethereum price?
Well, it depends on who we’re talking about. The switch from PoW to PoS is definitely a good thing for the end user. The latter will have faster transactions at much lower fees. However, if we take the miners’ perspective, they are basically running out of their Ethereum mining business. In fact, their bread and butter come from mining through the POW mechanism. That’s why some investors are still confused about whether the merge is a good thing for Ether prices.
If we take the worst-case scenario which assumes that 51% of the miners stop altogether in protest of the new consensus, there would still be alternatives and the process won’t stop. However, this might create yet another fork.
Ethereum price is consolidating around $1,800
Towards the end of July 2022, Ethereum prices managed to break the strong resistance price of $1,640. We expected a slight correction lower, which is exactly what happened afterwards. Today, prices are consolidating between This $1,640 price area and the important price of $1,800. It is normal to see a slight consolidation in prices, especially in key areas.
What will Happen to Ethereum price after the Merge?
Taking into account that the whole process runs smoothly, we assume that prices are going to explode. Of course, we would like to wait for confirmation, which should be an Ethereum price of around $2,500. Since the merge is scheduled to happen sometime in September, we expect prices to be around that area as shown in figure 2 below.
If successful, ETH price should easily jump to the psychological price of $3,000. On the other hand, any failure in the execution of the merge would lead Ethereum’s price to crash to $1,000 again. That’s a lot of speculation and a large price buffer, but cryptocurrencies are generally known to be highly volatile. That’s why it is advisable to stay updated on crypto prices on a weekly basis. Do subscribe to our non-invasive newsletter as we only send you important updates from the previous week so you stay up-to-date 😉
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