“The merge” will work in favor of a rise in Ethereum towards $2,200, according to Mike Novogratz. This process, which will change Ethereum’s algorithm to proof-of-stake, will be a major turning point for the network. Scheduled for September 2022, this new mechanism will not rely on mining, but on staking in order to be more ecological. Ethereum has not finished proving itself to be one of the best blockchain networks in the world. What about its market value?
Ethereum (ETH): “the merge”, the catalyst for a rise in its price
“The merge” is going to be a major turning point for the value of Ethereum, according to Mike Novogratz. This update is to change the proof-of-work network to a proof-of-stake consensus mechanism. Long awaited, this new mechanism will considerably reduce the number of Ethereum available for exchanges. This will also reduce the rate of inflation. Thus, ETH tokens will be more valuable in the eyes of investors. This is why the value of Ethereum is likely to see a rally towards $2,200. And that, even before The Merge” does not occur.
Ethereum was initially launched with a Proof-of-work consensus algorithm. This features miners in validating transactions by solving complicated problems. This mechanism is very energy intensive. As a result, the network will be changed to a proof-of-stake consensus algorithm for more ecological.
” Tea merge will therefore sign the end of mining for Ethereum. The number of tokens available on the market will be limited. Thus, there will be an increase in the value of Ethereum, since the demand will exceed the available supply. This is why this update, “the merge”, will be a catalyst that will drive up the price of Ethereum.
Ethereum (ETH): the worst may be over
It looks like the crypto market is ready to get back on its feet. And Ethereum is no exception since it has already been on the rise since July.
In addition, the Ethereum network is constantly updated. This allows it to be up to date and provide a solid fundamental foundation for its value.
Technically, the $2,200 price target is nothing but a resistance zone to watch. Once this zone is crossed, the price will likely seek to reach a new all-time high.
Let’s not forget that Blackrock has already tied itself to cryptos by signing a partnership agreement with Coinbase. This news will also serve as a catalyst to push the crypto market to start a new bullish phase. In any case, the worst is already (or perhaps) over for cryptos, and Ethereum in particular.
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