Crypto Winter It May Be, But Ethereum Looks Like A Buy
The Winklevoss twins are cutting employees at Gemini and are saying that the crypto winter is coming soon. The price for Ethereum ( cryptocurrency: Ethereum) down more than 60% from its most recent high, it definitely looks like this is the scenario. However, our view is Ethereum is beginning to appear interesting once more because it’s trading at a lower value, well above the previous resistance, and prior to another major overhaul. The upgrade is dubbed ” The Merge” The next update will join the existing Ethereum blockchain along with latest Beacon Chain to bring ETH 2.0 to existence. In the near future, Ethereum will transition from proof-of work to proof-of stake and will be viewed as a better platform for investing. When Ethereum is converted to POS mining, the miners are expected to disappear away to be replaced by stakeholders who will finance the network and supply liquidity for the transactions.
The crypto winter isn’t an entirely new phenomenon. The market for cryptocurrency has experienced several massive pullbacks, but the one that started in 2017/2018 is the most notable. The difference is that China started a lockdown that has forced cryptocurrency out of the country. This lockdown has slashed billions of dollars off market capitalization as investors poured into the exits , and that’s not what’s happening today. The market was able to recover over 90% and we don’t think that’s happening today. The market is trading on a fairly solid support level and is well above the main support level of $1420. The $1420 goal is in line with the all-time recordand will provide a substantial rebound, even if it is not a reversal and it’s only 70% lower than the current record highs. The most recent Cryptospring resulted in a gain of 4700 percent..
The Rebound In Ethereum Is Brewing
The resurgence in Ethereum after the first cryptocurrency winter was fueled by growing enthusiasm for the new technology. The interest began to manifest itself after the market had slowed for a couple of years. It led to renewed consumer interest and acceptance by financial mainstream circles, as well as the rise in decentralized financial. Decentralized finance, or defi, is the next layer of the cryptocurrency onion. It includes services such as loans, insurance and finance transactions that need backing or liquidity. The transition into ETH 2.0 is itself a type of defi since those involved will earn fees for their work.
It is estimated that the amount Ether invested in The Beacon Chain has grown consistently since the launch in December of 2020. The current value of the chain is more than 12.75 million ETH or less than $23 billion. The value in dollars is down, obviously due to the drop in ETH value, however we are seeing the issue getting better. If it is corrected it, the worth that is associated with The Beacon Chain will skyrocket because of the higher leverage, and will create an positive feedback loop to the markets.
The Ethereum Merge … Should Happen Soon
The merger of Etherem and Eth 2.0 is expected to happen in the near future however investors shouldn’t hold their breath. The upgrade is scheduled for a long time and has been delayed several times. The most recent update on June 2nd states that we can anticipate it to happen in the second quarter of the year. we’re leaning towards the lower end of the estimate. If it does happen, there are two main risk factors. The first is that it may not arrive. The upgrade might be pushed back a few times because of its complexity. Another reason is that it isn’t going to be able to work. If it fails to work, this upgrade may wipe millions of value from existence, however we’re not sure it will happen. The upgrade is more likely to be deployed and we’ll go back to only one Ethereum network in the near future. The next step is to implement the shard-chain function which allows off-chain transactions in Ethereum’s Ethereum framework. After that, we will be out to race for the Ethereum price since everything Ethereum can offer is available to us.