Ethereum merge: How will it affect the future of ETH prices?

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Ethereum merge How will it affect the future of ETH prices

Any spike in prices is music to the ears of the investors. Ethereum (Eth) is the world’s second-largest cryptocurrency after Bitcoin and the most pronounced altcoin.

Ethereum Merge enables the altcoin to become a less energy-intensive technology. Although many experts in the industry expected it to be a system update to become Eth 2.0, the Ethereum foundation deemed it fit to make it a merger. Analysts indicated that the merger could trigger changes in the world’s second-largest crypto by market cap.

Ethereum’s price before the merger was more than $1500, but the price dropped below the original price after the merger. In addition, the Federal Reserve could impose a higher interest rate in the market that may increase volatility in the price of Ethereum. The merger did not occasion Ethereum’s price fall, but it came because of FTX’s collapse.

Is the spike possible?

There are positive indications that the merger will bring considerable growth to the Ethereum foundation. Some new blockchain projects have indeed eaten into the space of Eth for the last six months. Ethereum merge can speed processing time, improving security and stability in the market. It will also have a 98% reduction in energy consumption.

The merger will also lead to price growth on other altcoins in the market. Projects building on top of Ethereum, like arbitrum, polygon, and others, will highly benefit from the merger. The new advancements will pressure Polkadot and Solana, which have competing protocols with Ethereum. The Ethereum merge tends to lower transaction costs, scale up the network and embrace blockchain technology to a greater capacity.

Do investors need to panic?

No call for alarm since the Ethereum merge is like a software update. Every investor in Ethereum should relax and wait for things to unfold. Although there will be changes due to factors such as increased regulations from the Federal Reserve, every investor needs a long time plan. Investing during the early days of blockchain technology requires a long-term horizon to learn how the system adapts to the crypto environment.

Significance of the Merger

The software upgrade, renamed as a merger, gives room for Ethereum to grow its presence in the market. Ethereum continues to head in the right direction.  The merger gives investors a clear indication of where Ethereum heads in the future. Crypto attracts many young and old investors, but young people are more enthusiastic about investing in crypto.  

Risks Involved In the Merger

Investing in crypto can be very risky due to the volatility levels exhibited in the market. Experts indicate that an investor needs to include about 5% of the total portfolio in crypto. The benefits from crypto can be massive, but its volatile nature may lead to loss of funds. Investors need to put the amount they will be comfortable losing. 

An investor who is ready to earn from crypto must invest in Ethereum. Most brawny investors indicate that Ethereum will experience a spike in the coming days. Some are optimistic that the price may skyrocket to reach $10,000 in the coming years.

The drawbacks in the price of Ethereum give experienced investors an indication of the right time to invest. One requires investing in a product when it is of a low value so that it comes with profit when the value goes up. Therefore, any investor with free cash or a high-risk tolerance level needs to invest in Ethereum.

Things That Will Make Ethereum Prices To Spike

Ethereum differs from Bitcoin because it allows developers to develop new applications, NFTs, and tools. The uses of Ethereum in the tech world are immense and contribute greatly to the entertainment industry, music, gaming industry, and decentralized finance. 

Ethereum was the most used crypto in 2021. The collapse of FTX in 2022 has made it rough for both Ethereum and Bitcoin. FTX was one of the world’s biggest exchanges, and its bankruptcy filing sent shockwaves to the market.

Early investors in Ethereum continue to enjoy a 300% return on investment every year, even when the markets have become highly volatile. The price decline has not affected their original investment making it a viable investment. The resilient levels of ETH coins in the market indicate that the crypto will continue to be in the market for a long time.

Market Price Predictions of Ethereum after Ethereum Merge

Some analysts indicate that the price of Ethereum may continue to drop to about $500. Analysts such as Kavita Gupta from Venture capitalists and another crypto analyst, Wendy, indicate that the price decline may continue.

However, several optimistic experts have indicated that by the end of 2022, the price of Ethereum may reach $4000. According to Mike McGlone, one of the Bloomberg intelligence analysts, Ethereum’s price may grow to $4500. Coinpedia, one of the new crypto news outlets, indicated that the price of Ethereum might hit a high of about $6500 to $7500 at the end of the year.

Now Is the Time

The right moment for any investor to invest significantly in Ethereum is now. The interruptions by the collapse of FTX may hinder the coin from hitting its intended high, but the analysts still indicate their optimism.

Parting Shot

Ethereum merger is a milestone in the crypto industry because it has necessitated better adoption of blockchain technology and encourages other applications such as gaming and music industries. Developers will easily develop and enhance their activities in the crypto world. The merger has also boosted optimism to the Ethereum investors by reducing the cost of production. Therefore, after overcoming the turmoil caused by FTX in the market, the price of Ethereum will steadily rise.

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