The long-awaited Merge upgrade of the Ethereum network was successfully completed in the early hours of Thursday, September 15, 2022, matching the earlier timelines provided by Ethereum developers.
The Merge transitions Ethereum from a Proof-of-Work (PoW) blockchain to a Proof-of-Stake (PoS) system, resulting in a far more energy-efficient network. Following the Merge, the price of Ether (ETH) fell sharply, trading at $1,474.20 in the early hours of Friday — roughly a 7.93% decline from Thursday’s levels.
Analysts, however, expect prices to recover in the days after the upgrade as investors unwind hedges and market uncertainty eases. To date, no major issues related to the Merge have been reported — a development likely to restore investor confidence and potentially support higher prices.
Jon Charbonneau, a researcher at crypto research firm Delphi Digital, described the Merge as “the biggest crypto event since the creation of Bitcoin and Ethereum.” Assuming no significant problems arise, market attention will shift to upcoming Ethereum upgrades and roadmap milestones.
To help investors and traders navigate buying Ethereum after the Merge, CoinJournal has produced a short guide on where to buy Ethereum.
Read on for more information.
Where can you buy Ethereum (ETH)?
What is Ethereum?
Ethereum was the second major blockchain network developed after Bitcoin, and its native token, Ether (ETH), is the second-largest cryptocurrency by market capitalization.
At launch, both Bitcoin and Ethereum used a Proof-of-Work (PoW) consensus mechanism to validate transactions. Over time, PoW proved to be highly energy-intensive, raising environmental concerns.
Ethereum began a planned migration to a Proof-of-Stake (PoS) consensus model to reduce energy consumption and improve efficiency compared with PoW.
The migration to PoS was finalized with the Merge upgrade on Thursday, September 15, when Ethereum successfully completed the transition.
Following the Merge, a new advertising campaign has been launched highlighting Bitcoin’s energy use under PoW, while drawing attention to Ethereum’s reduced energy footprint after switching to PoS.
Should I buy ETH today?
For investors seeking exposure to a major cryptocurrency that may benefit from long-term improvements and increased efficiency, ETH remains a compelling option, especially in light of the successful Merge. That said, the cryptocurrency market is highly volatile, and investors should proceed with caution and consider their risk tolerance before investing.
Ethereum price outlook
Despite the immediate post-Merge price dip, some analysts predict Ethereum could rise above $2,000 in the coming days as hedge positions are closed and market confidence returns, provided no technical or network issues emerge.
Social media trends around $ETH
“The merge will reduce worldwide electricity consumption by 0.2%” – @drakefjustin
— vitalik.eth (@VitalikButerin) September 15, 2022