Announced since December 2020, version 2.0 of Ethereum is slowly being put in place. The merge, that is to say the transition from Proof of Work to Proof of Stake could also take place during the month of October. For what impact on the price of ETH?

October could be decisive for Ethereum. With the transition from the first to the second version which will validate the transition from Proof of Work to Proof of Stake. Should we expect a change in the price of ETH following this new modification? Elements of answer here!

The August 4th Hard Fork Previous

On August 4, the Ethereum blockchain experienced a “hard fork“. With a hard fork in the blockchain from block 12,965,000. During the hard fork London, the price of Ethereum had climbed over $ 200 in the space of a few hours. While many observers agreed that the hard fork that would make Ethereum deflationary would have an impact on the asset’s price, it seemed difficult to consider a sudden rise in day one. Indeed, the operation was known to all and expected by the markets since July 20. Moreover, it is between the period of July 20 and August 4 that the price of the asset has climbed the most. From less than $ 1,800 to almost $ 2,500.

Good to know : Since the hard fork London, nearly 100,000 ETH of gas costs have been burned.

Since this day of August 4, Ethereum has experienced various fortunes. With an uptrend the month following this fork and a slower momentum for 3 weeks now. As shown in the graph below.

The August 4th Hard Fork Previous

Today, an ETH is traded on the markets for $ 2,971.

Focus on Altair and Ethereum 2.0

Launched in December 2020, version 2.0 of Ethereum aims to change the consensus for validating transactions. By moving from particularly energy-intensive Proof of Work (PoW) to Proof of Stake (PoS).

But this passage from the first to the second version is carried out via several updates. Updates like the hard fork last August. After the London fork, Altair should therefore arrive on the beacon chain. Here are some of the main improvements expected from this update:

  • Fixed staking reward bugs
  • Modification of the punitive parameters of theEIP-2982

The Ethereum foundation revealed two days ago that this update would take place on October 27th. One of the Ethereum developers also reveals that details will be published on October 4 on the update. These details will focus on all versions of Altair.

Ethereum 2.0: What Consequences on the ETH Price?

As with the previous hard fork, the direct consequences on the price of ETH are difficult to predict. However, if we take the lessons of the hard fork London, this could now play on the price of Ethereum. With a trend that could be marked upwards in the coming weeks and which could continue on October 27 when the protocol is updated.

In the longer term, the many optimistic forecasts on the price of Ethereum often cite this argument of the transition to Ethereum 2.0. However, if there is an increasing consensus, the proportions are very different depending on the participants. On the side of prediction algorithms, we also seem to agree with a longer-term uptrend. As such, WalletInvestor estimates that an ETH could be worth more than $ 5,500 within a year. On a longer-term approach and by 2025, the platform’s algorithms are counting on an ETH above $ 15,000.

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