After a long wait, the Ethereum Merge update is finally here, and it is working. Even though the deflationary aspects of this new and improved blockchain are yet to set in, the crowd is waiting patiently with the question – will Ethereum hit $10k post-merge?
It is natural to ask this question since, after many trials and errors, Ethereum has finally shifted to Proof-of-Stake. However, the performance of this crypto has been disappointing, to say the least – leading many to believe that this Merge might not be all it was cracked up to be.
Inflation and Dimmed the Excitement About Merge
Even though the crypto crowd was fairly bullish about the merge update, they weren’t oblivious to the recent rise in inflation. However, they continued to hope that this energy-friendly transition would bring more people to accept Ethereum. In all cases, that was a logical thing to expect.
However, that didn’t come to pass. The Ethereum price has taken a downward trend after the arrival of this update. Recent chart details suggest that the Merge has dropped by nearly 19% post the merge update, going below $1.4k, a price it dropped during the height of the crypto winter.
That said, it isn’t Merge’s fault. The entire crypto market is facing the same decline due to the rising inflation; The Federal Reserve has released data showing for the Consumer Price Index, which shows that the August inflation was 0.1% month over month. The year-to-year inflation currently stands at 8.35 – another concern investors must consider.
Interest Rates to Play a Big Role in Ethereum Price
There are rumors that the FED will increase the interest rate even more since the inflation rate has shown no signs of stopping. While the FedWatch data shows that the market is fully priced on 75 point basis, the current inflation has given a reason that the interest rates will rise to 100 points basis.
Another thing to note is that Ethereum has been trading below all major moving averages post Merge and has now fallen below the $1.4k level.
Ethereum Price Prediction
The full deflationary effect of this project will arrive in mid-2023. Till then, there is not enough data to make an accurate Ethereum Price Prediction. However, the post Merge daily chart suggests that Ethereum has likely found support at $1,276k and will retest the $1386 (0.786 fibs) soon.
The post-merge downtrend has put the market in disarray. However, there is still hope. The NFT market is still bullish. For instance, the sale of Bored Ape Yacht Club increased by 1,875% within only 24 hours. And the increase is not only limited to BAYC.
Magic Eden and Opensea also report that the activities on these platforms have increased by 77% and 86%, respectively. But why the sales of NFT are important?
Historically, the price of NFTs has always been closely tied to Ethereum’s market value. And if the NFT sale is any indicator, we can expect Ethereum to abandon this declining trend and go up soon.
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