- Ethereum Core developers announced a tentative merge date of September 15th.
- Ethereum supply expected to drop dramatically after merger via mass ‘burn’ equivalent to ‘triple halving’
- Analysts say the ETH price is likely to reach $5,000, a three-fold low since the merger.
The Ethereum Merger is going live sooner than the community expected. The Ethereum Foundation’s core developers announced a tentative merger date of September 15. A successful transition to Ethereum’s proof-of-stake is expected to lead to a drop in ETH supply – by some estimates – between 80-90% post-merger mass burn, resulting in a ‘triple halving’. This is expected to increase the price of ETH significantly.
Also read: Ethereum price explodes, eyes $2,000 after successful Goerli testnet
The Ethereum Merger will go live on September 15th
Ethereum’s merger, the transition from proof-of-work to proof-of-stake, is the most anticipated event in the history of altcoins. The transition to proof-of-stake is expected to reduce Ethereum’s power consumption by about 99.5%. At the same time, miners are becoming obsolete for the new Ethereum chain, where validators approve transactions on the network.
The Ethereum triple halving narrative has gained relevance as the merger draws closer. The triple halving narrative sees Ethereum locked in the ETH2 deposit contract as the biggest driver of ETH’s price rally. The ETH2 deposit contract holds 13.29 million ether worth about $25.15 billion. Nikhil Shampant, author of the Triple Halving narrative, argues that holding Ethereum is more likely to go viral than holding Bitcoin. Investors prefer Ethereum to Bitcoin for its energy efficiency and bullish potential.
The authors believe that the implementation of burning through EIP-1559, the merger of Ethereum and the widespread adoption of ETH are the catalysts for the triple halving. Ethereum is therefore an ultra-sound store of value with explosive growth in the number of active accounts and increasing transaction volume.
Ethereum’s transition to proof-of-stake will further push adoption
While Bitcoin’s narrative has dominated the crypto space since the 2017 bull run, Ethereum’s transition to proof-of-stake could further push ETH’s adoption. The triple halving narrative has set an Ethereum price target of $150,000 at its peak. This implies a market cap of $16 trillion and is unsustainable in the short term past.
Ethereum liquidity is expected to increase in price and hence demand among new traders and institutional investors.
Analysts predict Ethereum price rally to $5,000
Leading crypto analyst TechDev has identified a series of parallel channels in Ethereum. Analysts predicted that the next bounce from inside the channel could touch the upper limit of the channel at $5,000.
ETH-USD 1-week price chart
Decentrader, a leading crypto analyst and trader has set a short-term target of $2,400 for Ethereum price. Analysts argue that the liquidator and SFP indicator, which identifies short order stops in an asset’s price trend, are showing a higher volume of stops than the current price – 10x and 3x. High prices.
Ethereum price chart