Ethereum Heads to US$5k! ETH Merge to Trigger ‘Triple-Halving Event’

Ethereum Heads to US$5k! ETH Merge to Trigger ‘Triple-Halving Event’

The Ethereum upgrade will soon trigger a massive price rally, making ETH the largest cryptocurrency

The Ethereum price soared after Tim Beiko denoted that the ETH Merge will most probably be released around September. Not just ETH, but the wider crypto market retained back its US$1 trillion mark after Ethereum embarked on its first price rally of 2022. The highly anticipated ETH Merge upgrade is considered to be one of the biggest upgrades that the crypto market will see, but earlier predictions around the Merge scared most ETH investors that denoted that the Merge protocol will be yet another failure like Terra 2.0, given the current predicaments of the market and of the crypto investment community. Since the announcement, ETH rose above 50%, quickly recovering from the sharp market decline. Now, analysts await Ethereum to reach US$5,000, if the Merge upgrade is successful. As the big event is coming closer, the crypto market is prepping to experience increasing values.

Recently, BitMEX's founder Arthur Hayes predicted that Ethereum is gearing up for an intense price rally that would enable the token to reach the long-waited US$5,000 mark. Hayes also indicated that the current market value of Ethereum gives massive investment opportunities to buyers as it is currently selling around 70% below its model price range of US$2,000. Considering that the Ethereum Merge will be launched in September, Hayes predicts that the Fed's motto to promote growth rather than fighting inflation would provide more support to the suffering economy of the country, offering more buying power to crypto investors. If the Ethereum Merge protocol is successfully launched in September, it is most likely that the ETH token will soon breach US$5,000 by 2023.

Ethereum's Triple-Halving Event to Promote Instant Price Surge

As per expert predictions, the launch of the Merge upgrade will trigger a triple-halving event for the crypto. They believe that since BTC has mostly reacted positively to halving, it is also likely that Ethereum value will also surge instantly, given the two are quite closely related. Now, let's dive in deep to understand the 'triple-halving event' and the reason behind its importance to raise the value of Ethereum.

When the Ethereum network turns to the PoS consensus mechanism after the Merge upgrade is launched, the ETH supply will decline by approximately 80% to 90% through a process called 'burning' and generating 'deflationary pressure' on the network, which is equal to halving the Bitcoin system three times, this is the 'triple-halving' for Ethereum. The crypto's EIP-1599 protocol, also known as the Ethereum London fork, accompanied by the PoS consensus algorithm will drastically reduce the issuance of ETH. After this development, the demand for Ethereum is expected to dramatically increase in the upcoming months.

So, when should you buy Ethereum?

Based on expert perspectives, Ethereum 2.0 is supposed to establish a stronghold for the crypto in the DeFi and Web 3.0 industry, leaving little room for Bitcoin to reign as the largest cryptocurrency in the world. There are plenty of assumptions revolving around the market that depict the Merge upgrade will fail to appease investors, but its current price rally proves quite otherwise. According to Hayes, ETH is currently providing massive investment opportunities for buyers, hence, now will be a good time for investors to buy and hold the token to generate massive amounts of profits in the future.

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