Ethereum The most-loved altcoin and the second largest cryptocurrency in terms of volume, concluded its long-awaited merger on Thursday.
After many years of being the top digital contract blockchain The network upgrade will move the Ethereum blockchain to a more energy-efficient technology. You might have seen the planned upgrades known as Ethereum 2.0 (or Eth2 however Ethereum 2.0 is the name that has been used by Ethereum foundation has been calling the upgrade ” Ethereum Merge” for months.
Industry experts have been monitoring every move leading to the change forecasting that it could dramatically alter the value of the second largest cryptocurrency. The price of Ethereum was slashed below $1500 on in the early hours of Thursday morning following the this merger. In conjunction with the merger this week and next week’s Federal Reserve meeting could bring an additional level of uncertainty to the price of ethereum, with another rate hike by the Federal Reserve to be expected.
How Will the Ethereum Merge Influence Your Crypto Investments?
Some experts suggest that the new update could boost growth for Ethereum following new blockchain-related projects took its market share in the last six months.
“I do believe that we will see a positive reaction in the markets post-merge,” said YouTuber and crypto-education expert Hashoshi during one interview on his show “Crypto Over Coffee” in the spring of this year.
This is because the ethereum merger can speed up processing speeds and give you more security and stability. It also offers an 80% or more reduction in Ethereum’s energy use, Hashoshi said.
The altcoins mentioned could experience price rise due to this upgrade, according to Armando Aguilar An independent crypto analyst who was a the former strategist for digital assets at Fundstrat Global Advisors.
“The positive momentum will be for those projects that are building on top of Ethereum such as polygon, arbitrum … among many others,” he adds. While other competing protocols like the solana and polkadot might face an increase in pressure from the ethereum ecosystem, since the upgrade will enable the network to expand and reduce the cost of transactions and increase the acceptance of blockchain technology.
Do Investors Need to Do Anything With Their Tokens?
The Ethereum website says that current holders of Ethereum aren’t required to change anything due to the merger.
“It’s like a software upgrade,” says Doug Boneparth an advisor to financial clients and the president of Bone Fide Wealth.
How Should You Change Your Investment Strategy?
There’s no reason to take action while the situation is developing. It could take some time before everything’s in order and other elements like growing regulations could impact ethereum as well as other cryptocurrency during this time.
“If you’re investing in ethereum or any kind of blockchain technology, you’re investing in something that’s in its early days,” Boneparth says. “You’re going to require an extended time frame to observe how things develop. I don’t believe there’s anything that people who own Ethereum ought to be doing now.”
It’s an ideal time to increase your knowledge of cryptocurrency as well as blockchain technology, according to Boneparth. “If aren’t an investor, but you’re interested about the technology, this is an excellent opportunity to learn. If you’re an investor and are unsure, it’s the perfect time to get educated and to gain knowledge,” he says.
The fact that there’s an update and that blockchain transactions are increasing is a sign of the direction this is headed, says Boneparth. “And it’s never ever, ever, ever too late to learn,” Boneparth declares. “And that might just very well give you an edge or decide in terms of investing in crypto or any other cryptocurrency.”
When investing in any cryptocurrency Financial planners advise that you shouldn’t invest more than five percent of your portfolio in crypto. It is also recommended to prioritise getting rid of your debt and increasing your emergency savings account rather then investing your money in cryptocurrency regardless of how tempting it may be to take a ride on the wave. Most importantly experts advise against investing in more than you’re willing to lose, because crypto is still a new and volatile asset class.
If you’re still willing to take on for some risk based on these circumstances, ethereum might be a viable option. Together with Bitcoin Experts consider Ethereum to be among the most secure cryptocurrency investments, even before the merger could result in an eventual price return close to the record highest it reached in the late 2021.
Ethereum’s value is down over 35% from its record-breaking high in November 2021. trading volumes have slowed. A few optimistic investors anticipate the price of Ethereum to rise to upwards of $10,000 over the next years.
“After this latest drawback on prices, it might be smart for investors who have the appetite to be in the space to deploy some additional capital — based on their tolerance and their free cash — so that they can invest into this digital asset,” Aguilar says. Aguilar.