Ethereum network users have kept all the attention on the behavior of the price of ETH in recent days, because after “The Merge” its price seems to have a relative stability, but will it remain?
The price of ethereum after September 18 has remained in a range from $1,376 to $1,388, a change of less than 1%.
The Merge is not the only event that has directly impacted the price of ETH, as several factors have had an impact on the price behavior of virtually the entire cryptocurrency market.
What happened at The Merge?
The team behind Ethereum reported months ago about a merge that would be carried out to change the way the network works, with the aim of making it more efficient.
The Merge was successfully completed last week, between September 13 and 16, and many of the analysts’ predictions came true, one of the most important being the birth of a new cryptocurrency called ETHPoW.
At the time of writing, ETHPoW is ranked 2,658th according to CoinMarketCap and its price is $5.67.
ETHPoW are looking to keep the same working system, based on Proof Of Work instead of Ethereum’s proposed Proof of Stake, as it would affect mining as it was traditionally carried.
Ethereum price changes: what are they due to?
The question of what the changes in ethereum’s price are due to is quite common, however, they do not obey a single cause.
Before The Merge, the price of ethereum had a recovery, which may have been due to similar market behavior led mainly by bitcoin.
The decline in the price of ETH between September 13 was directly associated with the arrival of The Merge, as many platforms preemptively closed transactions, which meant drops of up to 17% in its price during the merge.
Subsequently, platforms reopened trading and the price remained relatively stable, with accumulation over a couple of days with variations that did not exceed 2%.
During the day on September 18, the market prices of cryptocurrencies had a significant drop, which also affected ethereum.
One of the main factors that have affected the market has been the increase in interest rates announced last Wednesday by the Federal Reserve System of the United States (FED).
To this, we must add the great fear of possible government censorship, due to the fear caused by the centralization of Ethereum by migrating to validator mining.
Will the price of ethereum hold up?
It is difficult to predict the price of ETH when there are several variables involved that can affect the market.
Ethereum’s price stood at $1,289.6 on Sept. 19 and has subsequently held steady averaging $1,350 between Sept. 18 and Sept. 20.
In recent days, the change in ethereum has not exceeded 5%, an indicator that the price could hold in the coming days, although we will have to wait for the effect that the 0.75 point increase in interest rates announced today by the FED may have on the cryptomarket.
By mid-2023, a new fork called Shanghai is expected, although it does not yet have a definite date, but it will possibly have an impact on the price of ETH.
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