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Before the Ethereum Merge: Should I Buy Ethereum Now?



 What is Ethereum?

Ethereum is a blockchain network that was launched in 2015 and was the first network to introduce smart contracts . This enabled Ethereum to become the basis for decentralized applications. Ethereum's network token is called Ether. 


Ethereum

Over the years, the Ethereum ecosystem grew extremely rapidly and Ethereum became the number 2 most popular and valuable cryptocurrency behind Bitcoin. With its smart contract functions, the Ethereum blockchain is the basis of numerous dApps and the determining blockchain in the areas of DeFi and NFTs.


What is the Ethereum Merge?

The Ethereum Merge is the introduction of the proof-of-stake consensus mechanism to the Ethereum blockchain. The Beacon Chain, on which Proof-of-Stake was first introduced and intensively tested, is merged with the Ethereum Mainnet. 


The Ethereum merge is the most important step on the way to the major update Ethereum 2.0 . The move to Proof-of-Stake was the crucial goal for Ethereum 2.0. This should make the Ethereum blockchain much faster, more efficient and more sustainable. The Ethereum Merge is scheduled for September 15th.


How did the ether price move before the merge?

Anyone who wanted to buy Ethereum in the weeks before the merger could look forward to rising prices as a result. Because the ether price saw a massive drop from the end of last year in June to below $ 1,000. But in the following weeks, the ether price saw an extreme increase and at times even went over $2,000 again.

After this price peak, Ethereum had to accept losses again. After falling to $1,430, the ether price has risen more sharply in recent days. So buying Ethereum has been worthwhile for investors in recent weeks. But will this also be the case in the days and weeks after the merge?


Is it worth buying Ethereum after the merge?

If you want to buy Ethereum, you might think that the merge could now be an extremely good opportunity to buy the cryptocurrency now. Because the performance of the network should improve significantly in the coming weeks and months. With these thoughts in mind, there seems to be no question of buying Ethereum now. 


But it can also be the wrong decision to buy Ethereum directly to merge. Many analysts see a risk that the ether price could see a stronger drop in the coming days and weeks.


In the following we would like to give some arguments for and against buying Ethereum at the time of the Ethereum merge:


What are possible reasons to buy Ethereum?

With the Ethereum Merge, the Ethereum network will theoretically become much more efficient, cheaper and more sustainable . The energy consumption by mining is drastically reduced. This should theoretically benefit the price of ether. 

By moving to Proof-of-Stake, the Ethereum ecosystem should continue to grow by increasing its scalability in the future. The long-term increase in the ether price is therefore very likely.

A successful merger could attract the interest of just new retail investors , who could buy more ether, leading to a short-term surge.

What are possible reasons not to buy Ethereum right now?

“Buy the rumors, sell the news!” is a well-known saying in the crypto market. This is about the trend that when there are rumors about a certain event, the prices of a cryptocurrency rise sharply, while when there is certainty, investors sell more and the price falls. This could also apply to the Ethereum Merge and the Ether course in the next few weeks.

The Ethereum Merge could continue to pose problems . In the last few days and weeks, the scenario has been intensively tested again. In the past, there were always delays because Ethereum wanted to test Proof-of-Stake extremely well again. But a faulty merge could almost certainly lead to a price drop.

We have been able to observe the migration of miners to other networks such as Ethereum Classic more intensively in recent weeks, which also led to an increase in Ethereum Classic. With such a big step, there is a risk that many participants in the Ethereum network will be dissatisfied with the result of Ethereum 2.0 , which could also lead to difficulties with Ethereum and even to falling prices in the long term. 

What is the likely post-merge scenario?

After the Ethereum Merge, there should probably be a slight price drop in the following days and weeks. Most analysts assume that Ethereum will sell after a successful merger. This would again apply "Buy the rumors, sell the news!". 


Ethereum

In the medium and long term, a successful merge should have an extremely positive effect on the Ether price. Some optimists even see that Ethereum could attack Bitcoin in the next few years with this move. They point to a possible massive increase in the scalability of Ethereum, so that the ecosystem could grow massively in the next 5 years. 


Is it worth buying Ethereum now?

An investment in Ethereum should basically be worthwhile for the next few months and years. We must note that extremely strong growth of the Ethereum ecosystem is very likely in the next few years. The Ethereum merge and the introduction of Ethereum 2.0 is a crucial step. Above all, Ethereum can set itself apart from other competitors such as Solana or Cardano.


There is definitely a risk for the next few weeks as many analysts are anticipating selling that could occur right after the merge. We are still in a bear market, which should lead to further falls in prices for almost all cryptocurrencies in the coming weeks and months.


Ultimately, it makes sense to buy Ethereum with a long-term ulterior motive. In the short term you could also make a profit with a purchase, but the risk is rather high right now around the merge. In the medium and long term, however, an investment in Ethereum should be worthwhile.

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