One of the most widely used cryptocurrencies at the moment is Ethereum. Every time there is a discussion about the state of the blockchain market, it is always brought up as the second cryptocurrency after Bitcoin, in the opinion of many.
Ethereum has been impacted by the market crisis that has wracked the industry since the start of the year, just like all other cryptocurrencies. The native asset, ETH, bottomed out in June 2022 at about $885.
But since then, its value has increased by more than a factor of two. Many analysts today believe that in August there will be a significant increase in its price toward $2,500. a study built on a variety of intriguing issues.
The Merge
Nowadays, it’s difficult to discuss Ethereum without bringing up The Merge. This is essentially a long-awaited blockchain upgrade that investors have asked for. The project’s sponsors announced it a few weeks ago, and it is scheduled to happen in September of next year.
The Merge update’s primary goal will be to provide Ethereum with a number of new technological tools. The cryptocurrency will be able to switch from the Proof of Work (PoW) method to the Proof of Stake (PoS) system thanks to this update.
A significant advancement that will give Ethereum the much-needed boost it needs both in terms of the scalability of the blockchain and the environment. The price of the cryptocurrency increased by almost 40% in July after word spread that the update will soon be available.
If nothing changes, The Merge will debut on September 19. Given that its value has already been steadily rising over the previous months, the growth is quite encouraging.
The price of the second-largest cryptocurrency in the world is now fluctuating between $1900 and $1989.14 as of the time of writing.
The increase in value
Ethereum has accomplished a significant market milestone, which is one of the factors contributing to its current excellent projections. In fact, the cryptocurrency came close to a crucial support and resistance range between $1,625 and $1,975 during its recent climb in value.
Thus, this area serves as support for ETH, giving it a stable price floor to continue rising toward and above $2,000 in the process. Experts believe that Ethereum should try to rise beyond $2,340. It can only overcome the next resistance line, which is placed at about $2,500, in this manner.
A Coming Change for Cryptocurrency
Even though Ethereum has lately had a fairly significant decline, the cryptocurrency nevertheless concluded 2021 in a good place. In fact, on November 10, 2021, the cryptocurrency exceeded $4,850, setting a new milestone. It maintained this value in December before reverting to $4,100 near the conclusion of the month.
Therefore, after reaching this record high, Ethereum rapidly decreased and eventually traded between $2,100 and $4,000 over the following few days. Since many of them believe that ETH will not be negatively affected for very long by this slow start in 2022, the scenario does nothing to inspire experts to despair.
By the way, the 2022 slump is not exclusive to Ethereum in terms of cryptocurrencies. After a great month in November, when it surpassed 68,000 and set a new record, bitcoin also experienced a sharp decline.
Volatility is unquestionably one of the key features of the bitcoin market. Experts continue to give investors the same advice when faced with these scenarios, which are becoming to become routine. Additionally, a number of factors badly impacted the industry in 2022, though it is gradually beginning to recover.
How should investors behave?
The approach to take in the face of market crises for cryptocurrencies is comparable to the recommendations made for any long-term investment: investors must ignore market fluctuations and resist the urge to cave. Ethereum has undergone a substantial downturn, but it has now hit a turning point that will undoubtedly allow it to return to its previous highs.
Additionally, The Merge’s announcement has already piqued the curiosity of a number of prospective investors. Thus, it serves as the primary driver that raises the price above $2,500. However, take note that following the September update with PoS, the price of ETH may experience significant corrections.
