With a successful Ethereum merger, which direction will Ethereum price go?

Just recently, the Ethereum blockchain went through the most important update in its entire development. Although many market participants expected the price of ETH to shoot through the roof following the merger, things did not go according to plan.

Integration is welcomed as a positive development.

The integration is the final step in Ethereum’s progress towards a proof-of-consensus (PoS) model. At this time, the project has been in development for at least three years, and the Ethereum Foundation has shown the importance of the project to the blockchain many times.

The Ethereum blockchain is expected to improve in several aspects due to this update, one of which is the full implementation of ETH staking. Another expected improvement is carbon neutrality.

According to some estimates, this could help reduce the overall carbon footprint of blockchain by 99.9 percent. It is also expected that the Ethereum Foundation will make some improvements to the blockchain in reference to the transaction speed. However, these improvements may not arrive until 2023 or 2024 at the earliest.

As the Ethereum blockchain becomes more scalable, it will be in a better position to host the hundreds of decentralized applications (dApps) running on it. At the same time, many developers who left Ethereum due to scalability concerns on the blockchain or chose one of the “Ethereum killers” will be motivated to return because they will have an incentive to do so.

Considering these factors, the price of ETH should increase in at least several years. In fact, there are some speculations that Ethereum (ETH) will eventually overtake Bitcoin (BTC), which has maintained its position as the leader in market capitalization. The possibility of Ethereum (ETH) surpassing Bitcoin (BTC) is becoming increasingly plausible as the Ethereum blockchain continues to expand and enjoy greater global dominance.

Successful integration but disappointing price direction

Although Ethereum integration has been a great success in terms of development, investors in ETH have been disappointed by the sharp drop in price. There is a 7.25% drop in ETH price on the last day after the merger was implemented. The relative strength index (RSI) of the asset is currently at 40.14, which indicates that buying is still low and investors are not currently motivated to acquire the asset.

It shows that macroeconomic variables will continue to have a significant impact on the market. This week, the Consumer Price Index (CPI), a key indicator for measuring inflation, was released by the United States Federal Reserve.

Inflation rose 0.1% in August, despite the market’s expectation of a slowdown in the statistics. In addition, although the price of gasoline is decreasing and the situation in the housing market is easing, the core inflation has increased by 0.6% per month and 8.3% per year.

The Dow Jones Industrial Average fell 2.6% after the publication of the CPI numbers, a direct result of the less favorable findings than expected. The S&P 500 index and the NASDAQ index both lost 2.9% and 3.6%, respectively. The cryptocurrency market’s close correlation with the traditional stock market has also contributed to the decline in the value of the coins.

Price Prediction for Ethereum: What Does the Future Hold?

The price of ETH has fallen in line with the overall market, which is currently trading at a low price of 2.61%. Ethereum, like other major cryptocurrencies, is seeing steady price declines.

Although there are no metrics to measure how well the Ethereum blockchain has performed since the merger, early signs point in a positive direction. Analysts predict that blockchain performance will improve significantly over time. This should encourage more developers and users of dApps to make Ethereum purchases and use it to settle transactions.

In addition, the predicted increase in market conditions in the near future should contribute to the increase in the price of ETH. When the trend in the market turns positive, ETH, which has a high market value, should be one of the most profitable coins.

Now he has another factor that may be contributing to the price increase. All in all, $1,500 seems like a fair starting point, especially when you look at the bigger picture.

Last word

Ethereum price is expected to skyrocket after the current bear market ends its journey. The property continues to be very valuable in the market, and the fundamentals arising from the merger are expected to increase the price even more.

After the removal of Proof of Work, it is predicted that there will be a significant decrease in the supply of Ethereum over the next two years. This prediction is based on the rapid expansion of the amount of Ethereum in the last six years.

In this sense, Ethereum will experience an increase in scarcity just like Bitcoin. By 2088, Ethereum will halve its current circulating supply, bringing the total number of coins to sixty million, according to ultrasound.money.

But what about the next two years? At this time, 120.5 million Ether tokens are used in transactions. The next couple of years should be very productive for Ethereum, which has now switched to using Proof of Stake instead of Proof of Work.

In the year By mid-2024, the total supply of Ethereum is expected to drop to 116.4 million. If you take advantage of the current weak market in cryptocurrencies and implement a long-term investment plan for Ethereum, you can. In the year To make a big return by 2025.

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