The largest altcoin again exceeded $ 3000 and increased by 25 percent in a short time. So how many dollars will the price be in the near future? Many investors fill a significant portion of their portfolio with Ethereum because it is less risky. Bitcoin and Ethereum are experiencing much more limited declines than altcoins and are leading the way as the markets recover.
2022 ETH Predictions!
ETH price has made a clear trend change and is targeting the $3,800 level after investors’ anticipation of the upcoming Merge pulled the bulls back into the market. A week-long uptrend in the cryptocurrency market has begun to wake up crypto investors, and the successful “merger” launch of Ethereum on the Kiln testnet on March 15 has the community excited about the upcoming transition to proof-of-stake (POS).
Since the successful launch in Kiln, the ETH price has seen an increase of 25% from $2,500 on March 25 to a daily high of $3,193 as investors try to lock in their positions ahead of the merger.
Does It Make Sense To Buy Ethereum?
Let’s hear from analysts what may happen in Ethereum (ETH) price as the merger approaches and how the transition to POS may affect its price in the long run. Cryptocurrency analyst Justin Bennett said:
“The last rise is probably nothing, I expect the price to recover further”.
A deeper analysis of the implications for the price of the upcoming merger for Ethereum was discussed by analysts from the independent global macro and crypto research office MacroHive, stating that the merger will have “bullish implications for ETH.” According to MacroHive, “the possibility of generating a passive return on staked ETH will attract more investors to the space” and the switch to proof-of-stake (PoS) will “reduce Ethereum’s energy consumption by 99.95%.”
This could help attract more institutional investors to the Ethereum ecosystem due to Environmental, Social and Governance (ESG) “mining/proof of work energy consumption” concerns. The merger will also have a notable impact on the circulating supply of ETH as block rewards are exchanged for Ethereum staking yields, which will drop significantly once the net issuance is complete.
MacroHive thinks that once the full transition is over, Ethereum will become deflationary. Experts’ opinions are that the price of ETH will rise with the PoS transition to be completed this year. However, cryptocurrency markets love surprises, and extraordinary developments can cause the price to drop significantly.