Ethereum price hits $3.2K as anticipation builds ahead of the ‘Merge’

Bullish crypto investors have been awakened by the weeklong uptrend in cryptocurrency markets. The March 15 launch on Kiln of the Ethereum “merge”, which was successful, has excited the community about the switch to proof-of stake (POS).

Cointelegraph Markets Pro data and TradingView data show that Ether prices have risen 25% since Kiln’s successful launch. They are now at $3,193 per day, as traders try to secure their positions before the merge.

ETH/USDT 1-day chart. Source: TradingView

Let’s take a look at what market analysts think will happen to Ether as the merger approaches. Also, how could the switch from POS affect Ether’s long-term price.

Clear breakout from the downtrend

Justin Bennett, a crypto analyst, succinctly highlighted the recent trend reversal in Ether prices over the last few weeks. He posted the following chart.

ETH/USDT 1-day chart. Source: Twitter

Bennett said,

“Ether highest point since Nov. 2021.” It is unlikely.

The merger will be a bullish move

Analysts from MacroHive, an independent global macro- and crypto research house, discussed the impact of the Ethereum merger on the price. They noted that the merger “will have bullish implications” for Ether.

MacroHive claims that investors will be attracted to the space by the prospect of earning passive returns on Ether staked. The transition to proof-ofstake “will decrease Ethereum’s energy consumption to 99.95%,”

This will help to attract institutional money into Ethereum’s ecosystem.

The merger will also have a significant impact on Ether’s circulating supply. Once completed, net issuance will experience a substantial drop-off as block rewards are replaced by Ether stake yields.

MacroHive stated,

“This, along with Ether burning continues, should make Ether deflationary. This should be bullish overall.”

Related: Institutions signal their readiness to enter the crypto market with a $2T rise in cryptocurrency prices

Merge could mirror Bitcoin halvenings

McKenna, an options trader and pseudonymous user on Twitter, provided a final insight into the potential effects of the merger. He posted the following tweet comparing the effects of merging to the Bitcoin halvenings.

Although the merge is a very crowded trade, it is also the case with BTC halvening. The only difference is that ETH will become a deflationary asset with EIP1559. The foundational web3 protocol, the S-curve, will see ETH rise to new heights in the coming decade. Anon, you are not ready.
— McKenna ($?, $?) (@Crypto_McKenna) March 23, 2022

The total cryptocurrency market is now worth $1.997 trillion, and Ether has an 18.7% dominance rate.

com. You should do your research before making any investment or trading decision.

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