What to expect from the post-Merge Ethereum, the whole truth
- Post the successful transition to proof-of-stake Ethereum there is no significant impact on the centralization of the ETH blockchain.
- Proponents evaluated the Merge’s impact on the cost of gas and expansion of transaction per second.
- Analysts set a target of $2,400 for Ethereum price post Merge, reveal bullish outlook on the largest altcoin.
Ethereum merged successfully and post the transition to proof-of-stake analysts have addressed the questions surrounding the ETH blockchain. Analysts remain bullish on Ethereum and set a new price target for the altcoin.
Also read: BREAKING: Ethereum Merge begins, the good, bad and ugly of crypto’s $22 billion bet
Ethereum PoS does not make the network more or less decentralized
Ethereum has garnered criticism from the crypto community for its centralization in the past. Therefore it is important to note that the transition to PoS did not make the network more centralized. The Merge did not have a significant impact on the centralization of Ethereum.
There are very few obvious changes for users. Transaction cost remains unchanged and there is no noticeable expansion in transaction per second. The change in consensus mechanism did not make a difference to most users holding or trading in Ethereum. While proponents expect long-term decline in transaction cost and increase in TPS, it is not immediate and noticeable.
The reduction in Ethereum’s energy consumption is likely to help tackle the energy crisis. Colin Wu, a Chinese reporter argues that Ethereum’s transition to PoS is in line with the impact of the low-carbon environmental protection concept. The PoW consensus mechanism has met with increasing opposition in the United States and the European Union.
Therefore, Ethereum’s move could drive mass market and mainstream adoption and PoS is adequate to tackle these challenges. It was a necessary transition which had relatively less to do with technicals and more with the mainstream values of environmental protection and adoption by institutions and retail investors.
Analysts have set a target of $2,400 for Ethereum price
Smart Contracter, a crypto analyst and trader argues that Ethereum is in the final innings of its correction after the recovery from July 2022 lows. Ethereum price is likely to climb 10% or more in the short term, in light of the bullish catalyst, the Merge.
ETH-USD price chart
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.
