ETH Up 11% as Vitalik Buterin Says Merge isn’t Priced in Yet
Ethereum (ETH) rose more than 11% over the past 24 hours after the new interest rate hike by the Federal Reserve prompted a rally in crypto and stock markets. However, Ethereum co-founder Vitalik Buterin said the upcoming Merge is not priced yet and will not be “until after it happens,” he said.
ETH Price Yet to Factor in the Merge
Vitalik Buterin, a co-founder of Ethereum, said in a recent interview with the Bankless podcast that ETH has not yet priced in the long-anticipated Merge in both market and psychological terms. The market can expect a 6-8 months waiting period before the actual price action “under the right set of conditions,” said Buterin.
“I think it’s [The Merge] not going to be priced in pretty much until after it happens.”he said.
The Merge is an upcoming Ethereum event that will shift the blockchain from the current proof-of-work (PoW) consensus model to a proof-of-stake (PoS) mechanism. That new version of Ethereum, also known as Ethereum 2.0, will make the blockchain significantly more energy efficient and faster.
Earlier this month, Ethereum Foundation hinted at a provisional date for the Merge, September 19, propelling the second-largest cryptocurrency up 20%. Buterin said the Merge is “looking more and more in the front view mirror,” but the ETH price is yet to factor in the event.
Ethereum climbed more than 11% in the past 24 hours amid a broader crypto market rally prompted by the Fed’s new 0.75% interest rate hike announced Wednesday. The crypto market has lost billions of dollars over the past few months as the 4-decade high inflation and the crash of the TerraUSD (UST) stablecoin pushed investors away from the risk assets.
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Can ETH Break $2,000?
At the time of writing, Ethereum stood at around $1,618.98, after surging more than 35% in the past month. However, the cryptocurrency is currently testing the resistance area around $1,700, a major bull/bear line for Ethereum price.
A break above this resistance zone with significant volume could pave the way for the Ethereum price to attack the $2,000 handle. This would mark the first time ETH has returned to trade above $2,000 since the end of May.
U.S. stock market surged yesterday on more dovish-than-expected comments by Fed Chair Jerome Powell. Given the high correlation between the tech-heavy NASDAQ 100 index and cryptocurrencies, the improving risk sentiment could help fuel the ongoing rally in Ethereum. The key resistance remains at $2,400 where the descending trend line that connects two prior peaks currently comes in.
Do you think ETH will break above $2,000 in the near future? Let us know in the comments below.