- ETH may reach over $2000 during The Merge
- Ethereum migrates from proof of work to proof of stake
- The Merge reduces Ethereum’s energy consumption to 99.5%
A market bloodbath continues to be experienced by traders and investors in the cryptocurrency space due to the declining prices of cryptocurrencies. Despite the bearish market, some investors still pledge their undying will to some cryptocurrencies due to the technological potential these digital assets possess. Ethereum is one of the cryptocurrencies that are widely supported by crypto communities around the world.
Today, Ethereum is like a shining star on the stage due to its most anticipated “The Merge” upgrade. Many analysts in the space are expecting that this upgrade will attract tons of investors to the network.
What is the Ethereum Merge?
The Ethereum merge is one of the anticipated technology upgrades in the cryptocurrency space. It is the migration of Ethereum’s proof of work to proof of stake along with the other improvements that will enhance the network blockchain.
Joseph Ayoub, an analyst at Citi who has studied the Merge, added:
This transition is essentially laying a road map to a future which is far more scalable, far more energy efficient and a lot more usable to the normal person. It’s laying the groundwork for adoption.
According to a report, traders and investors can expect the launching of The Merge on Sept 15 to 16 if everything goes as planned.
Why is the Ethereum Merge Important?
One of the reasons that made The Merge vital is the foundation that it will lay for the network’s future. In a tweet posted by crypto analyst Miles Deutscher, he showed and explained the 5 phases of the Ethereum upgrade. He also added that, as per Vitalik, Ethereum would be able to handle 100K transactions per second following the completion of the 5 key phases: The Merge, The Surge, The Verge, The Purge, and The Splurge.
In terms of technology, The Merge is said to make the network more energy efficient, addressing the cryptocurrency climate impact issue. Specifically, The Merge will make Ethereum no longer support mining activity on its network that uses tons of energy to operate; instead, Ethereum will switch to staking. The initiative that Ethereum is doing is said to reduce its energy consumption to 99.5%, indeed making Ethereum a go green environment-friendly cryptocurrency network.
Preston Van Loon, a developer, working on the Merge, explained:
The difference in hardware and energy consumption is so significant. When NFTs were blowing up, people were saying, ‘I’d love to have an NFT, but it feels like I’m burning a forest down.
Technology Behind The Ethereum Merge
The Beacon chain is another technology behind The Merge. It is a proof-of-stake ledger of accounts that adds and verifies transactions from the mainnet. When The Merge occurs, the information from the mainnet will be transferred to the beacon chain.
Source: Ethereum Foundation Blog
The Merge upgrade is unique and different from the previous upgrade in two ways. First, node operators need to update both their consensus layer (CL) and execution layer (EL) clients in tandem rather than just one of the two. Second, the upgrade activates in two phases: the first, named Bellatrix, at an epoch height on the Beacon Chain, and the second, named Paris, upon hitting a total difficulty value on the execution layer.
Ethereum Price Prediction
As seen in the graph above, Ethereum’s price remains above $1500 with its trading position above the ALMA indicator, a bullish signal. If this keeps on until the most anticipated Merge, ETH price will not have a hard time smashing the bullish price of $2000 and beyond.
In terms of the RSI and the MACD, both indicators are doing well. In other words, the RSI of the cryptocurrency continues to move with the 70-30 level. This RSI status of ETH states that the crypto is neither oversold nor overbought, an event favored by investors globally.
Additionally, the MACD indicator shows a possible bullish crossover against the signal indicator. If the MACD indicator successfully crosses the signal indicator from below, traders can expect ETH to perform a bull run.
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