Ethereum (ETH) prices have surged since morning trading hours, up more than 5%, as the Ethereum merger looms. However, it failed to sustain this momentum for long as the price was dragged down by bearish pressure from the daily high near $1,637 to its starting point. Although still well below necessary levels, purchases are gradually increasing.
As such, Ethereum may continue to trade between $1530 and $1613 while attempting to return to previous highs. If successful, the asset’s path to $1,650 is expected to be an easy one.
According to the forecast, from the current price trend, the price of Ethereum will reach $2,102 by the end of September, up 29.16% from the current value of the currency.
The important question is: is there something strong driving the price, or is it just a bubble created by the merger? continue reading.
This is why ETH will rise in the next few months
as mentioned earlier, Antoni Trenchev, co-founder of cryptocurrency lending platform Nexo, said that market analysts predict that there is no guarantee that the Merge upgrade will lead to an increase in the price of Ethereum (ETH).
in an interview with CNBC , Trenchev acknowledged that a price appreciation of Ethereum is possible, but it would depend on the early success of the upgrade based on a “positive feedback loop.”
Interestingly, Ethereum’s value has increased following the announcement of the upgrade, and some participants remain bullish on the stance that this is a positive sign for both the asset and the global market.
” We’ll have to wait and see, but this is actually Depends on how quickly the new network attracts users and transactions, because if that happens, a positive feedback loop could drive prices up significantly,” Trenchev said.
In addition, the founder of Nexo pointed out that in addition to the first success of the upgrade, due to Merge’s deflationary status, the value of Ethereum may increase. Such features are essential in the current hyperinflationary environment, he observes.
So whether it happens sooner or later, this could be a winning proposition for Ethereum as it will benefit from a significantly reduced supply after the upgrade.
Therefore, this adjustment makes Ethereum less susceptible to inflation, making it an ideal asset for market participants to invest in.
See at Trenchev Come, the next prerequisite is that Ethereum must switch to a new consensus method that will encourage the growth and enhancement of the network ecosystem.
There are some amazing things being built on top of networks like Ethereum right now. Decentralized finance has a lot of potential in its early days. Switching to proof-of-stake will make doing so simpler and more efficient.
Some already used long-term Technology has enabled significant yield creation, which is especially exciting in the low interest rate environment of the past ten to fifteen years. The metaverse is developing a bit slower than cryptocurrency enthusiasts would like.
As such, the price of Ethereum is expected to rise in the next quarter to balance the headwinds that have been strongly felt recently. As a bullish year can provide strong bullish momentum, while a bearish year may test new lows, so the end of the year could be seen as crucial.
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