What impact will the Merge have on ETH and the crypto market? If everyone agrees, The Merge is a great development for the Ethereum network, the impact on the price of the asset and on the crypto market as a whole does not seem to be a consensus. Between those who predict an explosion of ETH and the others who believe that the asset already includes the merger in its price, the rag is burning.
The Merge could revive ETH and the crypto market!
On the Coinmarketcap platform, the countdown indicates 7 days and 15 hours, the time that separates the blockchain from the biggest crypto event of the year: The Merge and the passage of the Ethereum blockchain from a Proof of Work protocol to Proof of Stake.
For many, The Merge could also positively affect the price of Bitcoin and the crypto market as a whole. And to justify this event, the most optimistic often cite the benefits of The Merge.
If the merger is supposed to make Ethereum 99.9% less energy intensive, other elements speak in favor of The Merge. Starting with the security of the blockchain which could be reinforced by The Merge. An element that has just been confirmed by Vitalik Buterin, co-founder of the Ethereum blockchain.
The lower transaction fees on the blockchain and the strengthening of its scalability could also be positive elements for the price of Ethereum.
The Merge, already included in the price of ETH?
If the benefits are known, some believe that they are already included in the price of Ethereum. For supporters of this theory, the event will have no real impact on the price of Ethereum since the price of the token already includes this transition from Proof of Work to Proof of Stake.
And to justify this element, the supporters of this theory cite above all figures. From its low point below $900, Ethereum has been on a strong bullish rally. In mid-August, the asset even flirted with the $2,000 threshold. As of this writing, Ethereum price is still above $1,500, up nearly 75% from last June's low. I
n comparison, Bitcoin is now trading close to its low point from last June. Over the last 3 months, Ethereum has therefore largely outperformed the mother of cryptocurrencies for one reason: The Merge.
For some, there would even be fear of a drop in the price of Ether after the merger. Indeed, according to the principle “ Buy the rumor, sell the news ”, some believe that the merger could be the trigger for a massive wave of sales of the asset. If we add to this the fact that the month of September is often negative for the crypto market and we get a cocktail of pessimism.
Uncertainty prevails!
Reading the Ethereum price around the merger could be summed up in a maxim of the Greek philosopher Socrates “I know that I know nothing”.
Because it seems that around The Merge, most players in the crypto world seem to lock themselves into a dogmatic posture.
Some arguing that suddenly the price of the token will soar and others preferring to move towards a less optimistic version. Not without certainties also displayed. The precedents also give contrary indications.
Reinforcing uncertainty. During the London hard fork on the Ethereum blockchain, the price of the asset soared, while the information had been known to everyone for several weeks. Conversely, on the Polkadot blockchain, the opening of auctions on parachains had caused the price of DOT to plunge.
Anyway, the degree of success of the merger could give the guideline to Ethereum. And maybe the entire crypto market. What seems certain is that in the event of major problems during the merger, the market will not hesitate to sanction Ethereum.
Data from the past few days tends to show that many whales are moving their ETH to exchanges as The Merge approaches. To resell them massively? Answers starting next week!
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