- Post the successful transition to proof-of-stake Ethereum there is no significant impact on the centralization of the ETH blockchain.
- Proponents evaluated the Merge’s impact on the cost of gas and expansion of transaction per second.
- Analysts set a target of $2,400 for Ethereum price post Merge, reveal bullish outlook on the largest altcoin.
Ethereum merged successfully and post the transition to proof-of-stake analysts have addressed the questions surrounding the ETH blockchain. Analysts remain bullish on Ethereum and set a new price target for the altcoin.
Also read: BREAKING: Ethereum Merge begins, the good, bad and ugly of crypto’s $22 billion bet
Ethereum PoS does not make the network more or less decentralized
Ethereum has garnered criticism from the crypto community for its centralization in the past. Therefore it is important to note that the transition to PoS did not make the network more centralized. The Merge did not have a significant impact on the centralization of Ethereum.
There are very few obvious changes for users. Transaction cost remains unchanged and there is no noticeable expansion in transaction per second. The change in consensus mechanism did not make a difference to most users holding or trading in Ethereum. While proponents expect long-term decline in transaction cost and increase in TPS, it is not immediate and noticeable.
The reduction in Ethereum’s energy consumption is likely to help tackle the energy crisis. Colin Wu, a Chinese reporter argues that Ethereum’s transition to PoS is in line with the impact of the low-carbon environmental protection concept. The PoW consensus mechanism has met with increasing opposition in the United States and the European Union.
Therefore, Ethereum’s move could drive mass market and mainstream adoption and PoS is adequate to tackle these challenges. It was a necessary transition which had relatively less to do with technicals and more with the mainstream values of environmental protection and adoption by institutions and retail investors.
Analysts have set a target of $2,400 for Ethereum price
Smart Contracter, a crypto analyst and trader argues that Ethereum is in the final innings of its correction after the recovery from July 2022 lows. Ethereum price is likely to climb 10% or more in the short term, in light of the bullish catalyst, the Merge.
ETH-USD price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Here are the best and worst-performing cryptocurrencies in H1 2024
A recent report by Crypto Koryo on Wednesday revealed meme coins as the top performers among cryptocurrencies so far in 2024, with several altcoins coming in behind. The worst-performing tokens are DeFi and governance tokens.
Ethereum poised to follow Nvidia's steps as Bitwise files updated S-1 draft
Ethereum (ETH) is down 3% on Wednesday following Bitwise filing an updated S-1 draft and a wider market downturn with potential Mt. Gox BTC supply flooding the market.
What to expect from altcoins as ETH ETF approval draws closer
As the crypto market continues consolidating on Wednesday, altcoins show mixed signals ahead of the spot ETH ETF launch. Many have predicted that the alt season may not occur in this cycle following the market lull. However, two key metrics suggest otherwise.
PolitiFi meme coins surge as Biden support lowers
Crypto prediction markets favor Kamala Harris over President Joe Biden as Democratic nominee in upcoming presidential elections. Meme coins based on Vice President Harris rallied amid BODEN token's 30% decline. Other tokens based on possible replacements for Biden experienced similar surges.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.