Ethereum Price Post-Merge: How will it be Affected?

When Is the Proposed Ethereum Merge Set To Happen?
Source: Tarlogic

The Ethereum Merge is set to begin its first step on Sep. 6. With the merge, Ethereum is set to shift to a PoS mining system instead of PoW. Hence, multiple markets may see fluctuation in prices once the merge goes into effect, including the Ethereum Price

Of course, ETH may well see the most important change after the merge. What can happen to its price post-merge? Will it spike in price or tank?

What will happen to the Ethereum Price post-merge?

Ether has already outperformed Bitcoin in the past few weeks due to hype surrounding the upgrade to PoS. It is possible that this hype will cause a continuous performance boost once the merge goes into effect.

Meltem Demirors, Chief Strategy Officer of CoinShares, believes otherwise, however. She calls the ongoing Ethereum success a “buy the rumor, sell the news” situation. The CSO stated that the Merge hype will eventually fade away and give Ethereum a reality check back to normal prices.

Martin Hiesboeck, head of blockchain and crypto research at Uphold, shares the same idea as Demirors, calling the merge a “sell the news event.” “There is no rational basis to believe ether’s price will be majorly impacted by this overhyped non-event,” he said.

Most agree that the Ethereum Price will continue to rise immediately after the merge. The biggest question is how long the spike will last. ETH has had multiple rallies over the past month, and it may see its biggest upon the merge.

If anything goes wrong during the merge, such as a delay, we may also see the opposite of a rally. If the merge is delayed at all, we will likely see a dip in Ethereum price. Ultimately, we will have to wait for the first step in the merge to launch. After the Sep. 6 upgrade, the Paris upgrade will complete the execution layer’s transition from proof-of-work to proof-of-stake. Paris is estimated to take place between September 10 and 20, 2022.