The Surprising Results of the Ethereum Merge
Ethereum recently achieved its long-awaited merge, a move that switched the entire ecosystem from POW (proof of work) to POS (proof of stake), an operating method that uses far less energy and is said to be a more efficient way of doing all the things Ethereum (ETH) is known for. Not only is the coin in the forefront of enabling smart contracts, but it is on the cutting edge of several other methods for streamlining the blockchain. What is the impact of the merger on the price? That’s the question at the forefront of the ongoing public discussion about Ethereum’s merger.
Investors who have trading accounts at major online brokerages like AvaTrade at https://www.avatrade.com can use information about recent ETH events to make more informed decisions. In order to evaluate the impact of Ethereum’s recent merge, it only makes sense to examine the price movements of the coin both before and after the event. Of course, that can’t reveal all the nuances of the situation, but it can open a door into the potential role the decision played on the altcoin’s value after September 15. Here’s a quick rundown of past, present, and future highs, lows, and other price-related activity that might shine a light on whether merging the old and new blockchains was a wise or unwise idea.
Table of Contents
Past
ETH’s value from one year ago up until Sept. 15, 2022, ranged between $4,800 to $902, with a lot of oscillation in between those numbers. In fact, the general trend has been downward since a $4,800 high in November 2021. But that story is the same for most crypto, both majors and minors. On Sept. 15, the chart showed a $1,504 level that should be used as a benchmark for later comparisons.
Read Also: Ed Sheeran details the lovestruck jitters in sweet new single …
Present
What happened from Sept. 15 onward? For one thing, Ethereum aims for serenity and to create a more scalable blockchain. Contrary to some expectations, prices fell in a nearly linear fashion from $1,504 to $1,343 within the space of a single week. However, it’s critical to note that bitcoin and most members of the crypto index funds did the very same thing, so it’s hard to parse the data and point to a single causative factor.
Future
What is the general outlook for protecting your crypto and price ranges? The innovative, feature heavy, interesting, famous ether has a bright future for dozens of reasons. Unlike some of the other majors, it has constantly fought to add value to the asset in terms of innovations that give holders more bang for their buck. The entire focus on proof of stake is a perfect example, as is the continuing effort to enhance ETH’s functionality in the smart contract space.
The ecosystem includes enough diversification. Though the non-fungible token projects have not panned out as hoped, Ethereum’s protocol consists of many other components, which should help it maintain value for years to come. It’s imperative to take predictions with a grain of salt. The possibilities for year-end reach as high as $7,000, while some prognosticators in the field offer a scenario in which ether reaches the $20,000 mark by the beginning of 2027.
Ask cryptocurrency analysts about the possible long-term price movements of the second-biggest altcoin, ETH, and you’re likely to receive different responses. It’s tough enough trying to pin down a crypto’s near-term performance, let alone make accurate predictions for how Ethereum might perform three, four, or more years from now. The good news for holders is that either is a market leader, both in terms of value and innovation within the space. The recent POS change-over is a testament to the crypto’s forward-looking philosophy.
Long-Term Social Trends Look Good
There’s no consensus on where prices are headed for ETH or any of its competitors. However, there are things you need to know and there are a few discernable trends that portend good things for the entire sector, while potential government regulation remains the single biggest threat to alternative forms of money in every form. On the plus side, the public continues to become more confident in using cryptocurrency in everyday transactions, which means it is being viewed as a common payment method.
There’s also the fact that the general value of the entire asset class continues to gain economic value. It’s increasingly easier for individuals to buy, sell, and store all kinds of cryptos in online and offline wallets and accounts. Since 2015 at least, the whole idea of non-national forms of money has been demystified. In terms of sheer numbers, the cryptocurrency segment now represents billions of dollars in holdings by institutions, governments, corporations, and individual investors. That was not the case only a decade ago when institutional acceptance of alternative monies was almost nonexistent.
