Ethereum is dirt cheap ahead of the Merge, claims analyst
- Ethereum’s value was $826 in 2017, and analysts argue that exponential growth and innovation could push the altcoin’s value higher.
- The Ethereum ecosystem continues to attract developers, use cases and media exposure, and there is room for growth in ETH price.
- Analysts argue that Ethereum is dirt cheap, and the dips in the altcoin’s price are attractive for ETH scoop buyers.
Ethereum price is currently undervalued and dirt cheap, ahead of the transition from Proof-of-Work to Proof-of-Stake, argue analysts who believe Ethereum’s value will multiply several times over the next few months following the Merge.
Also read: Is Ethereum a Security? Vitalik Buterin slams critics on Twitter
Ethereum price to explode following the Merge, say analysts
Ethernaz, a pseudonymous crypto analyst and NFT enthusiast, evaluated the recent crypto pump and compared it to previous bull markets. While analysts typically look back at history to predict exactly what will happen, Ethernaz argues that the current cycle is different from the previous time frame.
Investors expect a bull trap after the first cycle top and a double top like most cycles. Ethernaz argues that investors can witness a triple top in the ongoing cycle and a v-shape recovery like the S&P 500.
Ethereum’s peak in the 2017 cycle was $826, and in 2021 it was $4,850. Ethereum has witnessed massive technological innovation in the past four years, and the ecosystem’s value has multiplied more than six times. Ethernaz argues that Ethereum is currently undervalued and dirt cheap because of the development activity in the altcoin network. The rising number of dApps and developers in the ecosystem implies that ETH’s value is much higher than 6x its 2017 cycle top.
Since the Merge schedule went public, trading activity in the Ethereum network has increased. Luke Martin, a crypto podcast host, believes the recent price rally in Ethereum was a response to the news of the imminent Merge.
The results of the Goerli testnet will help developers determine whether the Merge will go live on schedule or if delays are expected. Haseeb Qureshi, crypto VC expert, believes Ethereum Merge would be delayed.
Ethereum price to continue its uptrend
Analysts evaluated the Ethereum price trend and believed the altcoin could continue its uptrend. Ethereum price will likely hit the $1,700 level, despite its high correlation with Bitcoin. The correlation between Ethereum and Bitcoin is 0.93, and a decline in BTC price is expected to increase pressure on the altcoin. However, BigCheds, a leading crypto analyst, argues that the Ethereum price has the potential to hit $1,700 in the current uptrend.
$ETH $1700 still makes sense even if $BTC rejects DEMA 34 given relative strength https://t.co/chWpRdViu2 pic.twitter.com/PrrEOSeGsk
— Cheds (@BigCheds) July 18, 2022
For price levels and more information on Ethereum’s trend, check this video:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
