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Ethereum climbing ahead of Merge, altcoins stand to benefit

15 Aug, 2022
Ethereum climbing ahead of Merge, altcoins stand to benefit

Ethereum (ETH) continues to climb as we reach the end of the week, surging toward the $1,900 mark for the first time in two months. At the time of writing, the second-largest cryptocurrency by market cap was trading at about $1,895. The top altcoin’s price has climbed over 85% since dropping below $1,000 in mid-June. Analysts have pointed to ETH/USD’s 50-week exponential moving average of $2,340 to predict a breakout at around $2,500.

ETH/USD performance in August. / c. StormGain

One factor contributing to the bullish sentiment behind Ether is likely the news that the much-anticipated Merge will take place earlier than previously scheduled.

Several core developers agreed on a Thursday call on a tentative early date for the Merge: Thursday the 15th of September, 2022. This eagerly awaited event should see the Ethereum blockchain transition from a proof-of-work (PoW) consensus model to proof-of-stake (PoS). This should make the Ethereum network more scalable, energy efficient, and environmentally friendly. 

Volatility should be expected for Ethereum before, during, and after the Merge date. A likely fork is something to watch out for, with die-hard PoW proponents splitting off the current version of ETH (known as ETHW) and network users being compensated with free tokens.

Ethereum isn’t the only altcoin that could get a value boost from the Merge. Crypto projects that facilitate ETH staking, could also stand to benefit. Lido DAO (LDO) is one such platform, with its token soaring by over 200% over the last month following Ethereum’s PoS announcement. Ethereum Classic (ETC) has had a similar trajectory since the Merge news, possibly because investors expect demand from miners who do not wish to use PoS.

StormGain Analytics Team

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