Ethereum Price Prediction: After the Merge Can ETH Reclaim $1,500 Soon?
The Ethereum blockchain has just undergone the most significant upgrade in its history. However, while many market players expected the price of ETH to skyrocket following the Merge, things haven’t quite gone as planned.
What lies ahead for the world’s second most valuable cryptocurrency?
The Merge: An Industry-Wide Positive Development
The Merge, as previously stated, is the final step in Ethereum’s transition to proof-of-stake (PoS). The project has been in the works for at least three years, and the Ethereum Foundation has emphasized its importance to the blockchain.
Because of this change, the Ethereum blockchain is expected to improve on several fronts – including the full implementation of ETH staking and carbon neutrality. According to some estimates, it could help to reduce the blockchain’s overall carbon footprint by up to 99.9%. The Ethereum Foundation is also expected to make some upgrades to the blockchain regarding transaction speed, although those upgrades might not come until 2023 or 2024.
JUST IN: #Polygon says #Ethereum’s merge to proof-of-stake will cancel out 99.91% of its network carbon emissions.
— Watcher.Guru (@WatcherGuru) September 6, 2022
The Ethereum blockchain will be better suited to support the thousands of decentralized applications (dApps) running on it as it becomes more scalable. At the same time, many developers who abandoned Ethereum or chose one of the “Ethereum killers” due to scalability issues with the blockchain would be incentivized to return.
This means that the value of ETH should skyrocket – at least in the long run. In fact, there is some talk about ETH eventually flipping Bitcoin (BTC) – the asset that has continued to lead it in terms of market cap. As the Ethereum blockchain grows to enjoy more global dominance, the prospects of ETH overtaking BTC seems more realistic.
Post-Merge Price Underwhelms the Market
Unfortunately, while the Ethereum Merge has been a huge success in terms of development, ETH investors have been underwhelmed by the slump in prices. The value of ETH has dropped by 7.25% in the 24 hours since the Merge was implemented. The asset’s relative strength (RSI) of 40.14 demonstrates that it is still underbought, indicating that investors are not currently incentivized to purchase the asset.
The drop in the price of ETH is consistent with the overall market, which is down by 2.61%. ETH, like other large-cap coins, has been steadily declining.
The market appears to be still heavily influenced by macroeconomic factors. The US Federal Reserve published data on the Consumer Price Index (CPI) this week, a key metric for measuring inflation. While the market expected a drop in the numbers, published data showed that headline inflation in the country increased by 0.1% month on month in August. Moreover, despite the drop in gas prices and the slowing of the housing market, core inflation increased by 0.6% month-over-month and 8.3% year-over-year (YoY).
The Dow Jones Industrial Average plummeted 2.6% after the CPI figures were revealed due to the worse-than-expected results. S&P 500 and NASDAQ Indexes both had 2.9% and 3.6% declines, respectively. Coin values have also decreased due to the cryptocurrency market’s close ties to the conventional stock market.
ETH Price Forecast: What Happens Next?
The drop in the price of ETH is consistent with the overall market, which is down by 2.61%. ETH, like other large-cap coins, has been steadily declining.
Although there are no metrics for the Ethereum blockchain’s performance since the Merge, early indications are promising. We anticipate that the blockchain will improve significantly in terms of performance over time. This should encourage more developers and dApp users to purchase ETH and use it to settle transactions.
In addition, an improvement in the market, which is expected soon, should help boost the ETH price. As a large-cap coin, ETH should be one of the biggest beneficiaries when the market turns bullish. It now has another catalyst to help boost its price. Overall, $1,500 appears to be a good starting point, especially in the long run.
Conclusion
Once the market downturn is over, the price of Ethereum is expected to surge. The asset remains one of the most valuable in the market, and fundamentals derived from the Merge should drive its price even higher.
However, ETH isn’t the only asset available to value-seeking investors. Tamadoge (TAMA) is currently one of the most exciting crypto presales, with many predicting it to be the next big thing in blockchain gaming. Its developers have already raised over $17 million through a presale, and the platform’s final features are scheduled to be released in Q4 2022.
