With Bitcoin’s price rising past the $22k level and breaking its one-month high, Ethereum is also showing significant price hikes, growing by over 10% in the past 24 hours and surpassing $1,470, inching closer to $1.5k, which it might hit this week if the crypto bull market continues.
Ethereum Network Inches Closer to Switching to Proof-of-Stake
ETH price is up over 28% in the past seven days as the network inches closer to switching from a proof-of-work to a proof-of-stake consensus model.
After successfully integrating the Shadow Fork 9 into its mainnet last week, Ethereum is set to switch the consensus model of its network to proof-of-stake in September, one of the main reasons for ETH’s positive price performance the past week.
Analysts call Ethereum’s recent price hike the “merge trade,” referencing the upcoming Ethereum network merge as a likely culprit for the increase in price, trading volume, and change in the market sentiment of ETH.
Some traders go as far as to predict that Ethereum could overtake Bitcoin in terms of market capitalization in the next few months. For ETH’s valuation to surpass BTC’s, Ethereum’s price must exceed roughly 15% of Bitcoin’s value. For example, if Bitcoin trades at $30k, Ethereum must trade above $4.5k to overtake the largest cryptocurrency. With the recent price action for ETH, such a scenario isn’t out of the question.
Ethereum Price Prediction
The recent Ethereum price rally means the cryptocurrency surpassed its previous one month, rising above $1,200 since it last dropped from the $1,800 level in early June.
With the current price rally, Ethereum could clear the $1,500 level in the next few days, attempting to set new support at the $1,600 – $1,700 levels.
A break past $1,750 will accelerate Ethereum’s price rally as traders will FOMO into the market, attempting to catch the digital asset before it breaches the $2k level.
It’s refreshing to see bullish momentum lasting more than a few days, and Bitcoin and global stock markets managing to secure short-term gains this week looks positive for Ethereum.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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