Merge will go live in the next few days. The Ethereum Foundation has announced that the Ethereum Merge testnet Kiln will be shut down next week. The developers stated that the potential timeline could be September 13-15. In this process, some of the crypto community and analysts expect a price increase in ETH after Merge. Ethereum Merge will enable the network to transition from a proof-of-work consensus to a proof-of-stake mechanism. The upgrade is also expected to drastically reduce energy costs.
Experts note that Merge is unlikely to fail. The Bellatrix upgrade was recently performed on the Beacon chain, the last upgrade before Merge. In fact, crypto phenom Ran Neuner said that there is a slight chance that Merge will fail. The expert said that the update has a 10% chance of encountering obstacles and added:
"The probability of starting Merge without any problems is 90%, and the failure rate is 10%. The probability of Ethereum Merge failing is negligible."
According to experts, regardless of Merge's failure or success, Ethereum price is likely to continue falling. Ethereum co-founder Vitalik Buterin warned that it could take a long time for Merge to have an impact on the price. The executive said it could take six to eight months for the update to accelerate the price. Buterin explained that under the right conditions, there could be a waiting period before a massive price hike. After the successful execution of the Bellatrix upgrade, the Ethereum (ETH) price responded positively. In the past week, ETH has increased by over 10%. According to CoinMarketCap, ETH price is up 3.24% in the last 24 hours to trade at $1,771.
The Chainalysis report said that Etherum price action could diverge from Bitcoin (BTC) and other cryptocurrencies after the Merge. The report also suggested that staking returns would potentially trigger massive institutional investment. In the report released yesterday, Chainalysis announced that its upcoming Merge update will introduce institutional investors to staking returns similar to instruments such as bonds and commodities. The report also emphasized that the new ecosystem will be more environmentally friendly.