The long-awaited Ethereum merge is happening only a few hours from now. As expected, a pump in price and bullish comments should be thrown around. However, that is not the case; many bearish remarks have been thrown around due to this incoming merge.
FUD In The Market
The total sell-off from the past week accounted for over 80% of Ethereum sales. This was resulted from FUD (Fear, Uncertainty, and Doubt) in the market. Investors could not tell the outcome of the merge and wouldn’t risk taking losses.
Measures from the Ethereum team have been taken to assure people of the success of this merge. This merge has been run on three testnets and shown to be successful. Bugs on the upgrade site have been run and fixed.
However, this does not answer the uncertainty in the space. The price of ETH was also affected as it tumbled over to the $1500 mark falling over 10% in 24 hours. It recently regained the $1600 mark due to consolidation in the market.
Investors’ fear stems from the inability to predict the market. If the upgrade fails and the merge doesn’t go well, investors stand to lose their funds when ETH dips. However, if the merge goes well, ETH has the highest possibility of tasting the $1800 mark again before going up this pedestal.
Market Updates And Predictions
The Bellatrix update on the 6th of September set the ground for this merge. It was the last update to prepare the system for the merge. The condition to trigger the merge remains after all blocks have been mined, estimated to be tomorrow, the 15th of September.
Analyst predicts that ETH will go above the $4000 mark and record its all time high if this merge goes well. However, this hasn’t calmed the market consolidation, as there have been buybacks and sales of ETH tokens.
The ETH has rallied with losses and sell-offs while other crypto tokens plunged forward. Considering the incoming merge, this has been a bad outlook for the token.
If this merge is successful, the ETH network will transition from the Proof of Work to the Proof of Stake system. Afterwards, trading activities would be normalized, and the power issue would be solved. Validators would take the place of miners on the network.