Ethereum Just Completed Its Big Test Merge. Here’s What It Means for Crypto Prices


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The test merger of Ethereum has just happened and the stakes are high for crypto investors wondering what it could mean for the market.

If successful, experts say it could increase the price of ethereum. That’s because testing is a crucial step ahead of Ethereum’s actual transition to participation testing later this summer, which will address concerns about Ethereum’s environmental impact and drastically improve its transaction speed, among other improvements, according to Ryan Grace , head of digital assets. in Tastytrade, a financial network that focuses on market analysis.

“While many variables influence the price of ETH, it is estimated that moving to the participation test will reduce the amount of ETH issued per block by 80%,” says Grace. “It will also lead to more efficient and cheaper transactions, which could lead to an increase in demand on the ethereum network.”

Cryptocurrency prices today: Bitcoin, Ethereum

Bitcoin, ethereum and other cryptocurrencies remain as volatile as ever, largely driven by ongoing macroeconomic uncertainty. Bitcoin, the largest cryptocurrency, has largely remained in a trading range of $ 28,000 to $ 31,000 since mid-May. Any notable price rebound was short-lived.

Ethereum has followed a similar pattern, staying in the $ 1,800 to $ 2,000 range for the past few weeks. But that could change significantly in the short and long term as the blockchain goes from working test to participation test to Ropsten test, the alternative blockchain from Ethereum that is used to test.

Ethereum developer Tim Beiko he announced in a tweet On Wednesday the network was able to successfully pass the Ropsten participation test. While this is an important milestone for Ethereum, Beiko says the merger into the test network is a “general rehearsal” before the merger into Ethereum’s main blockchain.

Cryptocurrencies have moved alongside stock markets in recent months, which have had a tough year amid rising inflation, shaking investor confidence, rising interest rates and fears of recession. The S&P 500 fell more than 13% in 2022, while the technology-heavy Nasdaq was hardest hit, 23% this year.

Ethereum price today (June 8)

The price of Ethereum has remained stable in recent days, trading at about $ 1,800 on Wednesday. Ethereum has dropped 3% in the last seven days ahead of its massive update in August.

Experts are divided on the next directional move for ethereum. While some believe the merger will be transformative for ethereum and significantly increase its price, others are more skeptical. What happens to the price of Ethereum in the coming months will ultimately depend on the success of the merger. Such a major software update can be easily susceptible to technical errors or problems, so the merger result has huge implications not only for the Ethereum network but for all encryption.

“This merger has been talked about for a long, long time and is finally coming. And I see that as a big catalyst for attention to go back to the altcoins, “Osprey Funds CEO Greg King told Coindesk.” It has a lot of potential. The merger should help with that. “

Bitcoin Price Today (June 8)

Bitcoin has fallen more than 2% in the past seven days, remaining steady at about $ 30,000 on Wednesday. Its price has been very volatile since the fall of the broader market last month, bouncing mainly around $ 30,000.

Cryptography expert Wendy O warns that bitcoin could fall further next month, between $ 18,000 and $ 27,000, if its price does not begin to stabilize. But even with the big falls, O is still optimistic about long-term bitcoins.

@cryptowendyo I still think we’ll see something like this in late July. I’m also happy to be wrong #TopGunMode #bitcoin #momtok ♬ original sound – • Role mitsuri Sam !! ~ 🌾

“For bitcoin, I like the average dollar cost strategy because I like bitcoin in the long run. It’s one of the most stable [crypto] investments that a person can make, “he told NextAdvisor.

What would the merger of Ethereum mean for cryptocurrency investors?

After years of being the leading smart contract blockchain, Ethereum is making the transition to a less energy-intensive technology. So what does this mean for your cryptocurrency investments?

Some experts say that there is an advantage for ethereum investors, but it is impossible to say for sure. Some call for the price of ethereum to rise to $ 10,000, while others remain bearish. But now everything is purely speculative: many are waiting to see how investors and companies developing their technology on the Ethereum platform respond to the changes.

In any case, the merger should not affect your long-term investment strategy. It will take some time for everything to be in place, and other factors, such as increased regulation, could affect ethereum and other cryptocurrencies during this time. Instead, use this time to focus on strengthening your knowledge of cryptographic and blockchain technology and assessing your risk tolerance for crypto.

Experts recommend keeping less than 5% of your portfolio in cryptocurrency because it is such a new and speculative asset class. As with any investment, don’t invest more than you can afford.

How Investable Are Bitcoin and Ethereum Right Now?

If you’ve done your research, considered the risks, and feel ready to invest in cryptography, ethereum can be a decent bet. According to NextAdvisor’s new investment score, ethereum and bitcoin are among the best cryptocurrencies you can invest in right now.

Bitcoin has the highest score of all cryptocurrencies, with ethereum close, although there is a return to prices closest to its all-time highs at the end of 2021. This is how our score shakes for 10 cryptocurrencies that are consistently among the top by market capitalization. , excluding stablecoins, for reference:

CURRENCY NEXTADVISOR INVESTMENT SCORE
Bitcoin (BTC) 80/100
Ethereum (ETH) 69/100
Solana (SOL) 55/100
Cardano (ADA) 54/100
Polkadot (DOT) 54/100
Avalanche (AVAX) 52/100
XRP (XRP) 50/100
Binance Coin (BNB) 49/100
TRON (TRX) 49/100
Dogecoin (DOGE) 38/100
Updated June 8, 2022





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