Experts Predict Ethereum Will Plunge Further In Price

It is one of the most important events that has occurred since the inception of blockchain technology and its industry. It will transform the blockchain’s Proof-ofwork (POW), into proof-ofstake (POS) status. Everyone is still waiting to see the positive effects of Merge.

In the crypto market, the effect of this transition has already begun to be felt. Over the last 48 hour, Ethereum prices saw a dramatic drop. Crypto market analysts fear that Ethereum may see a drop in price following the merge.

Although everyone hopes for good results, there are still some risks. It could negatively impact crypto price.

The Merge Hype Rumour May be a Buy Rumour.

Due to the merger hype, Ether is already performing better than BTC during the recent weeks. However, some experts fear the merge hype might have a ‘buy the rumor and sell the news outcome.

Capital markets are where you can buy and sell rumors. This happens when there are high expectations for Merge events and economic reports. Asset prices rise accordingly. After the event is over, prices rise again.

Lark Davis is a well-known Cryptocurrency trader. He also expressed concerns about the hype. His tweetAccording to him, the Merger is a bullish event. Davis described the expected features of the Ethereum POS. However, he also stated that they wouldn’t bring a significant impact immediately.

Following Davis’ analysis, the impact of an increase in energy efficiency, emissions, and all the features will only reflect in the long run. Therefore, he thinks the Ethereum merge has the ‘sell the news effect.

Quinten Francios is another major influencer in crypto. Francios says that after-merge Ethereum prices will fall, rather than the Bitcoin.

This means that Bitcoin prices will increase while Ethereum prices will drop after merger. He said that Ethereum’s price would rebound strongly over time.

Experts Predict Ethereum Will Plunge Further In Price
Ethereum prices plunge amid Merge. Source: ETHUSDT at

Ethereum Merge Won’t Solve Other Fundamental Problems

Experts explained why Ethereum merge results would not be implemented quickly. The transition will change the consensus mechanism of the blockchain to POS but won’t solve some other fundamental problems. For example, it won’t address the issue of low gas fees or expand the network’s capacity.

It won’t also improve the transaction speed. A smoothly executed upgrade won’t address the problem of high transaction fees.

Haward Wu is the CEO at Aloe. He expressed concerns over high Gas Fees in Layer-2s on LinkedIn. He said they would only be scalable if enabled by Ethereum’s throughput.

But Buterin’s Four-phased theory may address these issues. All the issues are solved by his data sharding and execution as well as scaling solutions.

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