• Ethereum’s transition to proof-of-stake has fueled a rally in Lido Dao (LDO), Ethereum Classic (ETC) and Optimism (OP). 
  • Analysts are evaluating how much longer the price rally powered by Ethereum’s Merge will last for the three cryptocurrencies. 
  • Demand for Ethereum staking services is expected to climb after successful completion of the Merge. 

Ethereum Merge announcement fueled a rally in several layer-1 cryptos including Lido Dao (LDO), Ethereum Classic (ETC) and Optimism (OP). Analysts have evaluated whether the rally in these cryptocurrencies is sustainable, as the Merge draws closer. 

Also read: How high could Ethereum price go with Triple Halving

Lido (LDO), Ethereum Classic (ETC), Optimism (OP) gain from Merge

Ethereum Merge has fueled a rally in Lido Dao (LDO), Ethereum Classic (ETC) and Optimism (OP). These cryptocurrencies posted massive gains in the past two weeks, riding on the Merge’s success. The successful Goerli testnet fueled a bullish sentiment among Ethereum holders regarding the outcome of the Merge. This had a positive impact on the prices of PoW network Ethereum Classic (ETC). 

Vitalik Buterin supported the Ethereum Classic (ETC) network and recommended users or network participants who prefer the proof-of-work consensus mechanism to move to the chain. ETC developers criticized the proposal to fork the Ethereum chain and wrote an open letter, asking network participants on the ETH chain to refrain from a proof-of-work fork. The letter was addressed to Chandler Guo and explained why a pow fork won't work. Find the open letter below: 

Open letter from ETC Cooperative to hardfork supporters

Open letter from ETC Cooperative to Chandler Guo and ETH supporters

Developers on the Ethereum Network expect no further delays in the event. The Merge is expected to go live on September 19, 2022. Ethereum price jumped in response to the announcement, climbing towards the $2,000 target. ETH hit its highest level in two months, after the Goerli update.

Since Lido DAO is a leading staking service in terms of Total Value Locked inside Merge’s official smart contract. Lido has poured 4.15 million ETH in the ETH2 contract and staked nearly 1.55 million ETH on behalf of their clients.

Therefore Lido DAO posted nearly 15% gains within the past two weeks. LDO is currently on a decline, posting nearly double-digit losses overnight. 

Ethereum Classic becomes bull magnet 

With its proof-of-work consensus mechanism, Ethereum Classic has grabbed the attention of bulls in recent weeks with the Merge drawing close. Vitalik Buterin’s recommendation and the growing infrastructure on ETC made it an investor’s favorite. ETC posted 20.6% gains over the past week. 

The PoW network is currently a refuge for miners on the Ethereum network. As the Merge draws close it becomes likely that the event will get priced in, therefore the rally may not be all that sustainable. However, the likelihood of a continued uptrend remains high given miners have the option of migrating to ETC. 

ETH-USD price chart

ETH-USD price chart 

Ethereum’s layer-2 solution Optimism (OP) offers gains to holders

Optimism, an Ethereum roll-up service that aggregates mass transaction data, has posted 10% gains over the past two weeks. The layer-2 solution could benefit from Ethereum’s roadmap that is largely roll-up centric for scalability and efficiency. OP price offered holders 250% gains since the announcement of Ethereum’s transition to proof-of-stake. 

Analysts have set a bullish target of $2.245 for OP price. Since OP price crossed the $1.54 level, the altcoin is set to bounce higher and rally towards $2.245 in its uptrend. 

OP-USDT price chart

OP-USDT price chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level. There is a significant downtick in bearish momentum amidst the recent decline. Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

More Ethereum news

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano price congestive nature continues during the final week of Sept. Despite the rest of the market experiencing volatile moves this week, the price has been quite stagnant. ADA currently auctions at $0.44 as the bears have prompted a 4% drop in market value.

More Cardano news

Japan to bring crypto within FATF Travel Rules by May 2023 to track illicit transfers

Japan to bring crypto within FATF Travel Rules by May 2023 to track illicit transfers

The privacy that comes with the use of cryptocurrencies has been both a bane and a boon for the community. Boon because it has made finances more of a personal affair but bane because it has also made it an effective medium of illicit financial activities. 

More Cryptocurrencies news

Top 3 Price Prediction: Why you shouldn't get overly bearish near these levels

Top 3 Price Prediction: Why you shouldn't get overly bearish near these levels

Bitcoin price has fallen penny-from-Eiffel style during the New York session on Tuesday, September 27. During the overnight session, the BTC price witnessed an 8% rally. The uptrend's move likely enticed retail traders to go long.

More Bitcoin news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP