Ethereum 2.0 Price Forecast: can the New Cryptocurrency Recover?
Recently, the price of Ethereum for the first time since May broke the $2,000 level. The take-off was preceded by the successful transition of the Goerli testnet to Proof-of-Stake (PoS) and the transfer of the estimated date of the merger in the main network from September 19 to September 15-16.
As The Merge approaches, discussions are flaring up in the community about the likely movement of the price of the second largest cryptocurrency by capitalization, the viability of a potential ETHW fork, and the prospects for Ethereum Classic.
Key takeaways about the Merger and how it will affect Ethereum
The potential impact of The Merge on the market is significant. However, it is rather difficult to predict its consequences for the coming weeks and months after the update.
In the medium to long term, the price of Ethereum is likely to rise due to deflation and gradual system improvements.
The future of Ethereum Classic and a potential ETHW fork is vague – the projects do not have broad community support.
Ethereum-derived tokens are unlikely to have value on the ETHPoW network. The Classic DeFi ecosystem is underdeveloped.
Will the updated Ethereum grow?
A number of metrics indicate the interest of market participants in Ether ahead of the most important and complex update in the history of cryptocurrency.
For example, the number of coins on the deposit contract of the consensus level (ETH2) continues to grow steadily.
According to Glassnode, the figure exceeded 13.3 million ETH: in July it grew by 1.9%, and by 50% since the beginning of the year.
A year ago, the trend to increase the number of Ether 2.0 addresses with a balance of ≥ 32 ETH resumed. In May 2022, the growth of the indicator accelerated significantly.
This means that we can conclude that market participants are interested in staking. This is also noticeable in the derivatives market.
How do brokers rate Ether 2.0?
The zero phase of the Ethereum 2.0 update – the “signal chain” (Beacon Chain) – was launched on December 1, 2020. With phase 0, the blockchain transition to the proof-of-stake (PoS) algorithm began, the full implementation of which will mean the end of ETH mining. Here is what some well-known brokers think about this transition:
RoboForex: Analysts concluded that Ethereum derivatives traders are “extremely optimistic” for the year end. Based on the ratios of many indicators, investors estimate the growth in the value of the cryptocurrency above $2200 – up to $5000.
DotBig: Volatility is evidence that investors are focused on Ethereum. The scope of fluctuations in volatility is much higher than that of Bitcoin. There is every reason to believe that the impact of the upcoming update on the market will be comprehensive and significant. Most likely, Ethereum will “enter a deflationary phase.”
FXTM: If user adoption of Ethereum picks up in the coming months and years after the Merge upgrade, the Ethereum supply will shrink even faster
Ethereum 2.0 Price Prediction for 2023
The price is forecast to maintain its upward trajectory based on past performance and the growing adoption of the Ethereum blockchain. It is second only to Bitcoin with $20 billion in capital and $12 billion in daily trading volume. Many expect an ETH breakthrough driven by Ethereum’s status as the first and only general-purpose blockchain.
The analysts concluded that the transition of Ethereum to PoS will force the miners to look for alternative sources of income. There is every reason to believe that switching GPUs promises a significant increase in the value of Ethereum in the long term. And this will lead to a decrease in the profitability of mining coins.
In general, the analysis of the cost of cryptocurrency by many analysts converges. All of them predict that the price of the asset will grow in the near future to almost $3,300 per coin.
Is ETH 2.0 a good investment?
The failure of the transition to ETH 2.0 is unlikely, as all current updates on the test networks are successful. In the worst case, a shift in the timing of the transition is possible, but not a rejection of the update and not its failure. So there is every reason to believe that ether will be a good investment. Follow to ETH v2 price and connect to DotBig investments.
Keep in mind that many factors influence the price of Ethereum, like any other cryptocurrency, and contribute to its stable development since the founding of the Ethereum blockchain. This asset was created to make it more versatile compared to the Bitcoin blockchain. This is shown by the ability to create smart contracts, powerful tokenization, sophisticated decentralized applications, and decentralized fundraising companies.
Should I buy ETH 2.0?
Ethereum’s record price remains an achievable target, primarily due to the fact that the project is associated with billions of dollars of DeFi. In addition, the upcoming ETH 2.0 update is another major factor that could affect the growth in the value of Ether. Overall, Ethereum will remain bullish and its value will definitely rise by a few percent before the end of this year. Therefore, investing in this cryptocurrency is advisable. In addition, the bullish trend is likely to continue in 2023, primarily due to interest in the merger and due to the weakening economy.
But when investing in Ethereum, you should not forget that cryptocurrencies are always risks. Especially when we are talking about a practically new asset. but in general, the decision to buy this asset and whether it is right for you is entirely up to you. Analysts predict that the price of Ethereum will rise and this is a guarantee of good returns. But do not forget the importance of doing your own research in order to get an informed idea about possible future price changes. Please note that predictions based on algorithms and analytics may not be accurate. DotBig LTD recommends to follow the development of the project and make a decision based on this.