The Ethereum Merge has come and gone, prompting investors to anticipate the next big developments in the market. Charles Edwards, founder of Capriole Fund, discussed the excitement surrounding the Ethereum Merge and its positive impact on prices. However, following the event, the crypto market has experienced a sell-off, with Bitcoin (BTC) trading below $20,000 and Ether (ETH) below $1,500.
As the market evolves, new narratives and trends are likely to emerge. Traders are expected to reallocate funds based on these emerging trends.
What Will Happen to Former ETH Miners?
With Ethereum’s shift to a proof-of-stake (PoS) model, miners have transitioned out of mining but still possess mining infrastructure like GPUs and ASICs. Some miners may opt to mine on alternative chains rather than selling their equipment.
While no specific chain has been chosen yet, Ravencoin, Flux, Ethereum Classic, and Ergo are among the top contenders. These networks have witnessed a surge in hash rates leading up to the Merge, with corresponding price increases for each altcoin.
It will be interesting to observe which network miners choose as their new mining platform in the coming months and the potential impact on cryptocurrency prices.
Expansion of the Cosmos Ecosystem
The Cosmos ecosystem continues to grow, attracting investors to ATOM. The price of ATOM has risen by 137.5% since hitting a low in June and is currently trading above $16. Factors such as upcoming liquid staking, the use of ATOM as collateral for stablecoin creation, the launch of Cosmos Hub 2.0, and the recovery of decentralized finance are viewed as positive long-term indicators for ATOM’s price.
Trading Strategies Amid Merge News
Despite the less bullish price action of ETH following the Merge, the shift to PoS has been successful. Over time, the benefits of PoS may translate to a more positive price trend for ETH. Ben Lilly, co-founder of Jarvis Labs, advises investors not to be swayed by short-term fluctuations and instead focus on the long-term potential of Ether under the PoS model.
Bitcoin’s Position in the Market
Bitcoin’s price has shown little change, remaining within a range of $17,600 to $24,400 for the past three months. While consolidation could benefit altcoins, macroeconomic uncertainties may continue to impact the crypto and equity markets. Potential rate hikes by the Federal Reserve could trigger further market volatility and affect cryptocurrency prices.
Investors are exercising caution with cryptocurrencies, and ongoing price rejections and support tests could potentially lead to a breakdown below yearly lows.
This summary was provided by Big Smokey, the author of The Humble Pontificator Substack and a newsletter author at Cointelegraph. Big Smokey offers insights, trend analyses, and early research on emerging crypto market trends every Friday.
Disclaimer: Cointelegraph does not endorse any content or product on this page. Readers are advised to conduct their own research before making any decisions related to the company and bear full responsibility for their actions. This article is not intended as investment advice.
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