Let’s have a look at several potential new trends that could influence the crypto economy in the period following the Merge.
Investors are now wondering what the next market trending event would look like after the Ethereum Merge has passed. The analyst stated that market optimism had been considerably raised by the excitement surrounding the Ethereum Merge and its strong price action.
After the event, the cryptocurrency market began to decline, with the price of Bitcoin (BTC) trading below $20,000 and that of Ether (ETH) trading below $1,500.
New events and market trends will eventually appear, and if the fundamentals are strong, traders will readjust their holdings when these new leaders take over.
Let’s identify a few possible trends.
After the merge, what happens to old Eth miners?
The Ethereum network has successfully switched to a proof-of-stake (PoS) architecture, which means that miners are no longer in control of their GPUs and ASIC mining equipment but may still have them.
Some miners can decide against selling their device and instead choose to mine on a different chain.
They haven’t decided on a specific chain yet, but the front-runners appear to be Ravencoin, Flux, Ethereum Classic, and Ergo. Each network’s hash rate reached new all-time highs prior to the Merge, as indicated below.
Each alt coin’s price increased during the past month, with Ravencoin (RVN) rising 169%, Ergo (ERG), Flux (ZelCash), rising 156%, and Ethereum Classic (ETC), rising 135% over the previous 90 days.
It will be interesting to observe which network miners potentially choose as their new home over the coming weeks and months, as well as the effect this has on the price of the cryptocurrency.
The Cosmos is still expanding.
The Cosmos ecosystem is still growing, which seems to be drawing more users to the platform (ATOM).
The price of ATOM has increased by 137.5% after bottoming out at $5.50 on June 18 and is now trading above $16.According to analysis, the launch of Cosmos Hub 2.0, the adoption of ATOM as collateral for stablecoin minting, the approaching launch of liquid staking, and the ultimate recovery of decentralised finance (DeFi) in general are all seen as positive long-term drivers for the price of ATOM.
Buy the dip or buy the rumour and sell the news?
Even while ETH’s price action right now isn’t as bullish as Merge advocates and ETH bulls might have wanted, the switch to PoS seems to have gone well overall, and possibly in the future, the advantages of PoS will result in bullish price movement from ETH.
The “Joe Cool move” for ETH investors, according to Ben Lilly, co-founder of Jarvis Labs, is not to “get caught up in the days to come. The miner is the main character who is most inclined to engage in any form of crazy behaviour. And that’s a one-time thing that will end quickly.
Lilly clarified this:
“Sitting there and supporting any overly emotional movement is the Joe Cool move. After that, relax and take it easy.
Ether may eventually encounter a supply shock and go through a deflationary phase. Staking guarantees returns on deposited assets and also safeguards the network. Finding a stable, predictable yield in a downturn-prone market can become more appealing.
Lilly is essentially saying that it will take time for the excitement surrounding the Merge to go down and for investors to start profiting from the advantages that the PoS Ethereum network might provide.
What about Bitcoin?
The price of Bitcoin hasn’t really changed that much. For the past three months, its price has been range-bound between $17,600 and $24,400. Since March 29, all price increases out of each range high have been stopped by the 200-day moving average and an overhead resistance trendline that runs from Bitcoin’s all-time high of $69,400 in November 2021.
Altcoins may benefit from further consolidation inside the present range, but macro tensions may continue to have a negative impact on the cryptocurrency and stock markets.
The United States Federal Reserve may increase interest rates more aggressively as a result of the strong consumer price index reading from September 12, and the potential ripple effect on stock prices may have an even more pronounced impact on cryptocurrency values.
Due to investors’ continued aversion to risk, it’s feasible that successive retests of the $19,000 support level and repeated rejections at the long-term declining trendline might finally lead to a fall below the annual swing low.
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Also Read:
ETHEREUM MERGE COMPLETED: BRINGING A NEW ERA TO THE SECOND-LARGEST BLOCKCHAIN
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