After extended heavy losses in the crypto market, prices started to slightly reverse higher. This crypto uptrend happens to occur just a few days before the official Ethereum merge event. Most investors are awaiting after the merge to decide whether to buy Ethereum or not. Others already started buying and are taking the risk of a price dip. Should you buy Ethereum? Where will Ether price reach after the merge?
What is Ethereum (ETH)?
Ethereum is a decentralized blockchain platform that creates a peer-to-peer network for safely executing and validating smart contract application code. Participants can do business with one another using smart contracts without the need for a reliable central authority. Participants have complete ownership and visibility over transaction data since transaction records are immutable, verifiable, and securely disseminated across the network. Ethereum accounts that users have created both send and receive transactions. As a cost of executing transactions on the network, a sender must sign transactions and use Ether, Ethereum’s native coin.
What is Ethereum Merge?
Ethereum is about to have a major upgrade in its blockchain. It is basically moving from PoW to PoS. This new consensus mechanism eliminates the need for miners to exist while making transactions faster and more efficient. This upgrade is enticing investors to come back to this crypto project and even invest in it. There’s a big debate about the future of Ethereum miners, as most would look for other alternatives. Ethereum Classic is one of the closest blockchains to Ethereum, hence miners look at it as their “safe haven”. Most of them plan to move to Ethereum Classic, which will still operate with a proof of work mechanism.
Ethereum Price Prediction – Will Ethereum reach $2,000 soon?
ETH prices managed to make a comeback from the crypto crash, which led ETH prices to reach a price of $880. This comeback allowed prices to reach the psychological price of $2,000. However, the hype of the merge faded back in August, along with other crypto-related factors that led Ether to adjust back towards $1,500. Today, Ether prices are back higher, aiming to reach back their previous psychological price of $2,000. In figure 1 below, we can see how prices are continuing their uptrend.
Two case scenarios might occur during the merge:
- If Ethereum manages to merge smoothly, prices can easily reach $2,000 and even continue to rise towards $3,000
- If Ethereum’s merge turns out to be a disaster, prices will dip towards $1,000 and even breach lower towards $800
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Source: https://cryptoticker.io/en/ethereum-price-is-up-before-the-merge-whats-happening-to-ethereum/