The Ethereum price has reversed course from a daily and weekly overall downtrend to a possible breakout of that trend and now sits at $3.1K at the time of this article. The ETH price trend reversal along with anticipation for the upcoming Ethereum ‘merge’ has awoken the bulls back to Ethereum.
The breakout of the downward pattern occurred this past week and seems to have alerted bullish Ethereum traders and investors. In addition Ethereum also successfully launched the ‘merge’ on the Kiln testnet in preparation for the full switch to Ethereum 2.0 or “consensus layer”, which is the transition to a proof-of-stake blockchain.
Recent charts show the price behavior reversal since the overall downtrend beginning in December of last year and also the possible reversal occurring around March 15th, the time of the launch of the ‘merge’.
Ethereum merge will likely cause bullish ETH price action
Many analysts have predicted that Ethereum’s move to a proof-of-stake blockchain will have a positive impact on the price of Ethereum. Bloomberg Analyst Jamie Coutts has recently revealed a very bullish prediction for Ethereum’s price stating it would grow more than 100% from its current price level. He has cited the Eth tokens many use cases in the real world and also the Ethereum merge to Consensus Layer which will scale the network and lower transaction fees and therefore encourage further use of Ethereum. His prediction was $8,300 for the ETH price, over 100% from current levels.
In addition the global crypto and macro research company MacroHive also stated the Ethereum merge “will have bullish implications for Ether.” MacroHive also said “the prospect of being able to make a passive return on staked Ether will attract more investors into the space,” while the transition to proof-of-stake “will reduce Ethereum’s energy consumption by 99.95%.” These developments will assist in bringing institutional money into Ether and will drop the supply of the token creating bullish action for the price of Ethereum.
Today the cryptocurrency market cap overall now sits at $1.996 trillion and Ether’s dominance rate is 18.7%.
*The opinions expressed in relation to price activity are the authors opinions and do not reflect the views of BumbleBeeCrypto.com and are not financial advice.