The long-awaited Ethereum Merge has just been completed recently, making ETH's future uncertain for investors. Learn how this update will influence investments.
Ether or ETH, the most popular altcoin and second largest crypto by volume, will see radical changes following the long-awaited Ethereum Merge update, which just took place. The decentralised programmable blockchain-based platform Ethereum has been the top smart contract blockchain for years, and this recent network upgrade marks its official transition to more energy-efficient technology.
Industry experts have closely monitored every step that led up to this big update and has forecasted that it could dramatically affect ETH's value, as seen by its price drop below $1,500 in the hours following the update. Apart from the merge, the Federal Reserve meeting may also invite more volatility to its price as another federal interest rate hike is anticipated.
The merge and its influence on crypto investments
Experts claim that the recent update may well spur the growth of ETH after several blockchain projects during the past six months ate into its market share. Many lean towards the markets showing a positive reaction post-merge because the update could improve processing speeds, provide greater stability and security, and up to 98 per cent or greater energy reduction.
The positive momentum of the update may also see related altcoins experiencing price growth as well as benefit projects building on the Ethereum network like arbitrum, polygon, and more. At the same time, competing protocols like polkadot and solana may face more pressure from the Ethereum ecosystem as it reduces transaction costs, easily scales the network, and attracts increased adoption of blockchain tech.
Does your investment strategy need an overhaul now?
First, it is important to mention that ETH holders do not have to do anything with their tokens in light of the recent merge since it is just like a software upgrade. Second, it will take some time before everything is in place, and factors like increased regulations may affect ETH and other cryptocurrencies in the near future. Therefore, there is no reason to do anything while things are still developing.
President of Bone Fide Wealth and financial advisor Doug Boneparth says that investing in Ethereum or virtually any blockchain technology means investing in something still in its early stages. Therefore, having a long-term time horizon is necessary to see how things develop.
According to him, there is not much to do for most people holding ETH at this point except to better their understanding of how blockchain technology, cryptocurrencies, and crypto exchanges in Singapore work. This period is also great for non-investors interested in entering the world of crypto to learn all about it and start trading cryptocurrency. It is never too late to learn something, and keeping up-to-date is the key to gaining an edge.
After navigating the risk factors involved with any crypto investment, Ethereum remains a decent bet. Following Bitcoin, experts consider ETH to be among the safest cryptocurrency investments even before the merge could drive prices closer to their all-time high back in late 2021, which has now dropped more than 35 per cent. Trading volume has tapered off, and bullish investors predict its price to rally upwards of $10,000 in the near future. After the recent drawback on prices, it may be wise for investors with the appetite to engage in crypto to put in additional capital – based on their free cash and tolerance – on investing in this digital asset.
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