- 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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.