Can Ethereum Reach $3k By Merge Date?
In the past few weeks, Ethereum (up 15% this week) seems to be on a roll. With the date of the Merge now set at 15 September, investors are snapping up Vitalik Buterin’s coin whenever they see a slight drop in price. Whereas we pointed out about a month ago that Ethereum needed to hang on to the $1,000 support line, by now a $3,000 target is no illusion anymore. Ethereum has since risen by almost 100% and analysts predict it could go even higher.
If you believe the merge is going to succeed, then this is yet another positive structural reason why $ETH could gap higher into the end of the year.— Arthur Hayes (@CryptoHayes) August 11, 2022
Famed crypto specialist Arthur Hayes, who correctly predicted the crypto crash of June in April of this year already, is highly bullish on Ethereum’s price. Earlier this week, he spoke of a possible $5k price point for Ether if the Merge goes ahead as planned and delivers on it’s promises. Vitalik Buterin, creator of Ether, has long been an advocate for proof of stake, writing about it as early as 2013.
The Merge (set to occur on September 15th or 16th) will switch Ether from its energy-hungry proof-of-work blockchain to a more efficient proof-of-stake system, and Wall Street investors are piling up as it works towards that date.
According to supporters of the Merge, Ethereum’s new proof-of-stake mining will use 99% less energy consumption than proof-of-work models. The ESG worries that investors had last year (as they claimed that Bitcoin mining was not eco-friendly) should then be swept aside and Wall Street can step into a ‘clean’ Ether coin.
#Ethereum has successfully completed its final dress rehearsal ahead of its long-awaited #merge to proof-of-stake.— History DAO (@History_DAO) August 11, 2022
Ether’s price briefly topped $1,900 today on the news.#DeFi #crypto pic.twitter.com/zUQ4ABTLn6
In any case, analysts at Glassnode believe that there will be a selloff after the actual Merge date and that now is the time the coin can still go up. In a research note this week, they said:
Both futures and options markets are in backwardation after September, suggesting traders are expecting the Merge to be a ‘buy the rumor, sell the news’ style event, and have positioned accordingly.
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