The most anticipated crypto event, Ethereum’s transition from Proof-of-Work (PoW) into a Proof-of-Stake (PoS) consensus mechanism is only hours away. What are the expectations for the price of the Ether?
Bearish Sentiments Engulfs Ethereum (ETH)
With the Ethereum merge only hours away, many would expect the sentiments about ETH to be positive. However, before the CPI report caused the broader crypto market plunge, ETH was in losses while other cryptos rallied.
The reason for the Ethereum bearish sentiment arises from uncertainty about the outcome of the upcoming Merge. In the last week, Ethereum products accounted for $62 million out of the $63 million that flowed out of cryptos.
These outflows arise from the fear that things may not go as planned with the Ethereum merge. With hundreds of billions tied to the Ethereum ecosystem, it is understandable to see why the fears of a failed upgrade could lead to a major drop in the price of ETH.
What is in Store for Ethereum (ETH)?
Reacting to the CPI results, the price of Ethereum tumbled by more than 10% to hit a low of $1,564. However, the price of ETH has now recovered above $1,600 with the merge only a few hours away.
The 24 hours price chart for Ethereum (ETH). Source: CoinMarketCap
If the price of ETH holds above this level going into the merge, Ethereum could retest $1,800 before going higher. While the price predictions are not astronomical for the next few days, GovCapital has predicted that ETH could hit $4k in one year.
On the Flipside
- The chances of the merge going wrong are slim as Ethereum developers have performed the merge dozens of times on three different testnets.
- In addition, after the September 6 Bellatrix upgrade, Ethereum Foundation developers assured the community of the safety of the mainnet merge.
Why You Should Care
As the second biggest cryptocurrency, the success or failure of the Ethereum merge is bound to have far-reaching consequences for the entire industry.
Read about the hard fork of Ethereum in:
The Launch Plan for EthereumPow (ETHW) Hard Fork Announced Ahead of the Merge
Find out more on the merge in:
Ethereum’s ‘Bellatrix’ Upgrade Goes Live – Developers Explain The Spike In Missed Blocks