Ethereum prices soared over the weekend after Friday’s network announced a tentative release date for the long-awaited software update, also known as “The Merge.” But experts say it will be clear over time whether Ethereum prices will continue to rise or fall to their previous lows.
Ethereum, a cryptocurrency unique to Ethereum, has recovered rapidly from the sharp market downturn that came after news of higher-than-expected inflation data released last week, a whopping 40% recovery in the last few days. .. The second largest cryptocurrency is currently trading near $ 1,500. This is up significantly from just a few days ago when it was trading near $ 1,000.
Ether’s current price is down 75% from its November highs, but investors are closely watching every step leading up to the merger. Many anticipate a major software update for Ethereum — Scheduled for September 19 — You can significantly increase the value of your network by making it more efficient, faster, and cheaper to use.
Whether Ethereum is fulfilling its promises is still unknown, especially after several delays over the years, said Martin Hiesboeck, head of blockchain and crypto research at cryptocurrency exchange platform Uphold. increase.
“Ethereum price behavior certainly expects the entire market to turn corners in the coming weeks, but the sudden surge is mostly hype and perhaps what” merge “actually does. Motivated by a lack of understanding about. “Hiesboeck says.
What does Ethereum Marge mean for your crypto investment?
There has been a lot of talk lately about the Ethereum merger, which has contributed to the bullish sentiment of the crypto market. Last week’s conference call between Ethereum developers revealed that Ethereum will move from Proof of Work to Proof of Stake on its main network in mid-September, but it could be delayed again.
“It’s been published six times so far in very similar language.” This may just be a hopium, “says Hiesboeck.
Ethereum has risen almost 40% since its announcement, Bitcoin has risen more than 10% and has traded over $ 22,000. Smaller altcoins followed their lead. There are several reasons why the latest merger announcement of Ethereum is important. Ethereum is approaching the transition to this new model, with improvements such as reduced environmental impact and dramatically increased transaction speeds.
This could significantly increase the price of Ethereum and provide favorable returns to investors who invest early. Some experts have stated that 2022 will be a “year of success or failure” for Ethereum and predict that prices after the merger could double or quadruple. Related altcoins may also increase in price after the upgrade.
“The fact that many large investors, from funds to private trusts, mostly own Ethereum and are barred from investing in other chains, could raise prices even further in the short term.” Said Hiesboeck.
Cryptographic expert and educator Wendy Oh says when analyzing technical charts that “things look pretty good” about Ethereum, but can exceed $ 1,294 in the next few days or weeks. Only if you can, you can reach $ 1,700.
Should You Invest in Ethereum?
When investing in cryptocurrencies, financial advisors warn you to keep less than 5% of your portfolio in cryptocurrencies. And no matter how attractive the hype is, you should prioritize debt repayment, investing in traditional retirement accounts, and building emergency funds before investing in crypto. Best of all, experts say that crypto is a very dangerous and speculative asset class, so don’t invest more than you think it’s okay to lose.
Ethereum may be a solid bet if you are already prioritizing other aspects of your finances and are willing to take some risk. Ethereum’s Next Advisor’s investability score has risen by almost 1% in the last 24 hours to 71 out of 100. Experts consider Ethereum to be one of the most secure crypto investments, even if, in addition to Bitcoin, Marge does not encourage a return to everything-high prices set in late 2021.
