The Ethereum merger has been one of the biggest and most important events in the crypto market in recent years. The network has been fully converted to Proof-of-Stake. The merge went smoothly. What are the effects of the merger on the network and what are the predictions for Ethereum in the next 3 months?
In this article, we want to discuss the short-term predictions for Ethereum and see in which direction the Ether price can develop in the next 3 months.
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What is Ethereum?
Ethereum is a blockchain network that has been around since 2015 and was the first to introduce smart contracts. This allowed the Ethereum blockchain to become the basis for decentralized applications. The Ethereum ecosystem has grown significantly over the years, which has also had a positive effect on the price of its Ether network token.
Over time, Ethereum has become the leading blockchain in the DeFi and NFT space. The network has grown steadily in recent years. With the Ethereum merger, Ethereum shifted its consensus mechanism towards efficient proof-of-stake. This should make the network more efficient, sustainable and faster.
How has the price of Ether evolved over the past few months?
Over the past few months, the price of Ether has seen a steep decline. Ether price reached a new all-time high in November 2021 when it broke above $4,800. After this all-time high, the bear market set in and the price of Ether fell sharply. At the start of the year, the price of ether was only $3,800.
In the new year, Ether price saw another steep drop in the first few months. In the spring, the price was able to stabilize again before the price of ether fell sharply again in May and June. Ether price low was below $1,000 in June. The price was then able to stabilize again.
What explains the recent price movements in Ethereum?
Ethereum’s recent price moves are largely driven by the bear market. At the start of a bear market, there are always massive losses in most cryptocurrencies. It also caused the price of Ether to drop around 80% from its all-time high.
Moreover, the Ethereum merger had a strong impact on the price in the weeks before and after. Ether price has seen a strong surge, especially in the weeks leading up to the merger, which has improved the outlook for Ethereum over the past few months. The price of ether has risen from $1,000 to $2,000.
As the merger got closer, the price of Ether fell towards the lows in June. The price fell back below the $1,500 mark. The merger itself then caused virtually no price movement thereafter.
What is the prediction for Ethereum in the next 3 months?
After the Ethereum merger and the move into the fourth quarter, we now want to take a look at how the price of Ether might develop in the coming months. The Ethereum merger was an extremely important event that could usher in a new era for fusion. But what factors influence the forecast for Ethereum?
What factors make the predictions for Ethereum positive?
In the next 3 months, it is quite possible that the price of ether will rise again. Here, however, Ethereum needs a positive development in the overall market. Right now, the bear market has a firm grip on cryptocurrencies. In the last few weeks after the Ethereum merger, the Ether price, like the prices of other cryptocurrencies, has already moved sideways.
The sideways movements could continue over the next few months and cause the forecast for Ethereum to remain neutral over the next 3 months. A break in Bitcoin price above the $20,000 mark could ensure that the market returns to profit, which will also have a positive effect on Ethereum.
The fourth quarter is known to see bullish prices more often, making it more likely for prices to rise. If we again see increases in the crypto market, the price of ether could also break above the $1,500 mark towards $2,000.
What factors make the forecast for Ethereum negative?
In the next 3 months, however, the Ethereum price could also move negatively. Due to the bear market, this possibility seems even more likely at the moment. Many analysts were more likely to expect losses after the Ethereum merger, as prices tend to fall after major events after rising before. “Buy the rumors, sell the news!” describes this phenomenon in the crypto market.
Moreover, an overall bear market is also a risk for the price of Ether. If the Bitcoin price support falls to $19,000, Bitcoin could fall towards $15,000. This should also lead to losses for altcoins like Ethereum.
What is the forecast for Ethereum in the fourth quarter?
Now that we have discussed the factors for a positive and negative forecast for Ethereum, let’s take a look at which direction Ethereum price should move. A sharp drop in price only seems likely if Bitcoin price support drops and the market drops massively. This is very unlikely, so the price of Ether should hardly drop below $1,000.
A sharp rise in the price is also unlikely. Over the past few weeks, prices have often risen briefly before cryptocurrency prices corrected lower again. A sustained and larger price increase is unlikely in the coming weeks and months.
The most likely scenario in this case is that Ethereum’s forecast at $1,100 to $1,800 lies. The price might rise slightly over the next few months, but is unlikely to experience a massive bull run. Further declines seem highly unlikely as Bitcoin price support is extremely strong at the moment, preventing further cryptocurrency losses.
Is an investment in Ethereum worth it?
Ethereum has taken an extremely important step into the future with the Ethereum merger. The network has directly become much more energy efficient and is expected to operate much more efficiently with Proof-of-Stake in the months and years to come. However, this should hardly translate into short-term gains as the influence of the bear market is too great.
An investment should pay off in the long term, because the network could still grow extremely strongly in the future. A multiplication of the Ether price should be possible in the next few years when the bull market resumes. The long-term forecast for Ethereum looks overwhelmingly positive.
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