Where Can ETH Price Go After Ethereum’s Ropsten Test Merge?
In the last couple of years, popular blockchains like Ethereum and Bitcoin have faced various issues related to scalability, eco-friendliness, security, and transactions. Ethereum 2.0 upgrade comes with a solution to many of these problems. It is in the news because of the much-anticipated transition from proof of work consensus to proof of stack consensus. It is one of the major upgrades on the Robsten public test net.
Robsten is the oldest test net in Ethereum, which allows the development of a protocol before deploying that on the Mainnet of Ethereum, and it was first rolled out in 2016. The main difference between the test net and the main net is there is no ‘fund’ at the stack, so if technical issues occur, developers will solve it without impacting the users.
The news was first announced last month that the configuration of the Ropsten test net would run alongside Ethereum’s main net.
In the last week, they announced a new beacon upgrade which is also known as Bellatrix. It is one of the first requirements to activate the Ropsten test net merge. They have decided on Terminal Total Difficulty (TTD), which is a pre-decided difficulty value to launch the upgrade.
Client software teams, including Teku, Erigon, Nimbus, and Lodestar, are participating in the Merge upgrade. Experts think Ropsten Merge is an essential upgrade before switching the consensus to proof of stake.
It helps the developers to determine what it will look like if Ethereum finally switches to an energy-intensive algorithm mechanism. Indeed, a successful merge will help in Ethereum’s Mainnet transition.
In the last few months, crypto markets have been in a bearish trend. Will it change the momentum? Bitcoin is below $30K, and Ethereum is also in a downtrend.
The Merge upgrade will be a make or break for ETH because it has been delayed for various reasons, building frustration and anxiety among the developers’ community and investors. Now analysts believe the launch later this year will help the ETH price to bounce back.
This PoS model will solve high transaction costs, scalability, and mining-related issues. In short, it will make the blockchain user-friendly and eco-friendly.
Meanwhile, this Ropsten Merge update goes as per the plan, and developers have activated the merge on the Ropsten test network. It is a vital trial before the mainnet transition, and this Ropsten Merge takes it one step closer to ETH 2.0.
It is currently relying on a proof of work model where miners consume energy to solve complex mathematical calculations to validate transactions. Now, it will switch to proof of stake consensus, which ensures the transactions will be validated by the stakeholder on this network. It will decline the amount of energy it used to consume in the previous algorithm.
However, Buterin advised not to forget ‘the risk that still remains after the events.
At the time of writing this post, ETH USD is trading around $1800. The chart seems to be in a downtrend because nine consecutive red weekly candles in the lower half of the Bollinger band suggest selling pressure in the market.
MACD has been forming red histograms, and RSI is in an oversold zone. It is a bearish trend in the market, and the Ethereum market sentiment index is also fearful with 29 points.
The only positive sign is in the exchange reserve rate index. The exchange reserve for Ethereum is decreasing, whereas the price in USD is increasing, which suggests the ETH coin is getting scarcer. Based on the ETH price prediction, the price of Ethereum will increase in the next few months.
Overall retail investors are fearful, but big investors accumulate the coin to get a long-term profit in the next three years. Retail investors will miss this opportunity and might get stuck at a higher level because $2500 and $3100 will be resistance levels of this coin.
Indeed, after the Etherium 2.0 upgrade, the price will bounce back and reach a new all-time high, but before that, it may consolidate within a range, so it is the ideal time to buy Ethereum for the long term.
If you have stuck at a higher level, hold the coin for the next five years, and you will get a good return. Please follow our website to get the latest update on Ethereum.