Possible Bitcoin and Crypto Industry Trends After Ethereum Merger

The Ethereum merger ended, leaving investors to worry about the subsequent market trend. Capriole Fund Founder Charles Edwards said the excitement over the Ethereum merger and its strong price movement had boosted market optimism slightly. Now that the event is over, the cryptocurrency market is in decline, with Bitcoin (BTC) trading below $20,000 and Ether (ETH) trading below $1,500.

Eventually, new narratives and market trends will develop, and if the underlying conditions are favorabletraders will rebalance their portfolios as these new leaders emerge.

Let’s look at many likely trends.

Where will ETH miners be employed?

The Ethereum network has successfully transitioned to a proof-of-stake (PoS) mechanism, which means miners are paid out but can still own their GPUs and ASIC mining gear. Miners can choose to mine on a separate chain instead of selling their equipment.

Although they haven’t decided on a specific chain yet, Ravencoin, Flux, Ethereum Classic, and Ergo seem to be the favorites. As shown here, prior to the merger, each network’s hash rate reached new all-time highs.

Hash rate ETC. Source: 2Miners

ERG hash rate. Source: 2Miners

RVN hash rate. Source: 2Miners

FLUX hash rate. Source: 2Miners

Ravencoin (RVN) is up 169%, Ergo (ERG) is up 132%, Flux (ZelCash) is up 156%, and Ethereum Classic (ETC) is up 135% in the past month.

Curiously, the hash rate and price dropped drastically on September 15, and only ZelCash and RVN seem to be bouncing back. In the coming weeks and months, it will be fascinating to watch which network miners choose as their new home and how that affects the price of the cryptocurrency.

The universe continues to grow.

The Cosmos environment continues to grow, which seems to be attracting buyers. Since hitting a low on June 18 at $5.50, ATOM’s price has risen 137.5% and is now trading above $16. The analysis indicates that investors consider the imminent introduction of cash stakingthe use of ATOM as collateral for the minting of stablecoins, the launch of Cosmos Hub 2.0, and the ultimate resurgence of decentralized finance (DeFi) as long-term bullish drivers for ATOM price.

Buy the dip?

While the current ETH price movement is less bullish than merger proponents and ETH bulls might have liked, the actual transition to PoS appears to have been successful, and the benefits of PoS could eventually turn into bullish ETH price action. According to Ben Lilly, co-founder of Jarvis Labs, the “Joe Cool” approach for ETH investors is to not get caught up in the days ahead. The miner is the character most likely to engage in bizarre action. This is a one-time event that will be brief.

According to Lilly, the Joe Cool maneuver involves sitting still and accepting any highly emotional action. So relax and unwind.

Ether may experience a supply shock and become deflationary in the future. Staking increases network security while ensuring returns on deposited funds. In a bogged down market, it seems more attractive to get a stable and predictable dividend.

It will take some time for the excitement around the merger to die down and for investors to start enjoying the potential benefits of the Ethereum PoS network.

What’s up with bitcoin?

In this week’s Bitcoin study, I noted how the bitcoin price didn’t move much. Since March 29, all rallies off each range top have been constrained by the 200-day moving average and an overhead resistance trendline extending from Bitcoin’s all-time high in November 2021 ($69,400).

BTC/USDT 1-day chart. Source: Trading View

While further consolidation inside the current range can (and usually would) be positive for cryptocurrencies, macro tensions continue to weigh on crypto and equity markets. The rise in the consumer price index from September 12 could lead to more aggressive rate hikes from the US Federal Reserve. The ripple effect on stock prices could have a more drastic impact on cryptocurrency values.

As a result, investors remain risk averse towards the majority of cryptocurrencies and, likely, repeated rejections at the long-term downtrend line and further retesting of the $19,000 support could ultimately lead to a drop. below the annual low.

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