BofA Says Ether May Still be Losing Momentum Until Merge Is Completed

On Friday, August 26, Bank of America in a note, stated that the rise in Ether’s price from mid-July to mid-August will continue to diminish as users will better understand the implications of the Merge. To the uninitiated, the upgrade of Ethereum will result in the transition to the proof-of-stake protocol from proof-of-work.

Till the time Ethereum overcomes its current implications, the investment bank predicts that the rival blockchains such as Avalanche, Solana, Binance Smart Chain, and Tron, will continue to gain market share.

Alkesh Shah, BofA analyst in a note addressing to clients said the investors have come to the realization that proof-of-stake will not reduce the high transaction fees or address scalability concerns.

Traders believe that even though the Merge could be influencing short-term price appreciation in Ether (ETH), however in the long-term the asset remained muted looking too weak macroeconomic sentiment and BTC technicals indicating a downside.

Following the aggressive comments from Jerome Powell, reserve chairs at the keynote address at the Fed’s Jackson Hole, Wyoming, conference, Bitcoin dropped by 4% to below $21,000. At the time of writing, the price of Bitcoin (BTC) was trading at $19,953.41, experiencing a 0.06% drop in the past 24 hours. The prices of Bitcoin first fell below $20,000 for the first time at the start of July. On the other hand, the crypto market has ended on a bearish note. The global crypto market reached its lowest point in August.

Meanwhile, in the past weekend, the top altcoin too experienced a major fall after the Fed Jackson Hole meeting. At the time of writing, Ethereum was trading at $1,486.75, a 0.44% rise in the last 24 hours with a market cap of $177 billion.