It was one of the most important events in the cryptocurrency market in recent times. Therefore, investors and traders waited with high hopes. However, the effect of the bear market was short-lived. You’ve probably guessed the event we’re talking about. Yes, Ethereum Merge. However, JP Morgan says the true impact of Merge is yet to be seen.
Leading altcoin lost value despite huge boost
cryptocoin.com As you follow, Ethereum Merge has been successful despite many questionable approaches. A month has passed since this important event. However, its impact on Ethereum price was not at all as expected. Right after Merge’s completion on September 15, the ETH price dropped. In fact, there was hope in the market that the network upgrade would act as a catalyst in the bear market. However, since then, the price of the leading altcoin has largely followed a horizontal curve.
After the merge was completed, the ETH price dropped sharply by around 10%. Also, the negative momentum continued afterwards. After the decline, the price held the $1,400 level for a few days before falling further. ETH is trading at $1,277, down 2.13% in the last 24 hours, according to CoinMarketCap data. The leading altcoin hit an all-time high (ATH) of around $4.9k in November last year. However, it has been falling ever since. At its current price, Ethereum has slipped 74% from the ATH level.
“Merge not yet priced for Ethereum”
However, JP Morgan analysts note that crypto investors are still not pricing in the upside from Ethereum Merge. According to a CNBC report, the ETH price has yet to see the impact of the escalation event. This is in line with Ethereum co-founder Vitalik Buterin’s prediction that it may take some time to get priced after The Merge. He said long before Merge, ETH would need the right case to capitalize. Buterin noted that investors should wait 6-8 months before real price action.
In this context, the number of addresses holding Ethereum is currently at a 10-month high. We will see in the near future whether this situation will lead to an ETH price increase. At the current level, ETH is in the weekly low range. That compares to a weekly high of $1,377.
Meanwhile, earlier on Tuesday, tech giant Google announced that it will partner with Coinbase to allow Cloud user payments in crypto. Cryptocurrencies to be used for crypto payments will include Bitcoin, Ethereum and Dogecoin. According to experts, this development is likely to help further institutionalize Ethereum.
