Downside pressure could push Ethereum (ETH) towards $1800
It’s unimaginable to think right now that Ethereum (ETH) could fall below $2000. It will mean that the coin will be right in the middle of a bear market. But it is actually possible thanks to several downside risks. We will highlight them in detail below but first, here are several highlights:
The biggest risk comes with the possible launch of Ethereum 2.0.
As Ethereum 2.0 merge with the Beacon chain, it will trigger severe selling across multiple exchanges.
This could push ETH towards $1800 in the near term.
Data Source: Tradingview
Ethereum (ETH) – Why is the Merge risky?
Ethereum has been talking about a move towards a proof of stake consensus for a while now. This is expected to make transactions faster and cheaper on the chain. But merging the proof of stake with the current Ethereum Mainnet will have its risks.
In fact, experts warn that it will trigger major selling across all exchanges, something that could sink ETH towards $1800. Besides, Ethereum has shown very little upward momentum in recent days. The coin is now trading at around $2500 and has struggled to clear the $3000 mark.
We are still not sure when the migration towards Ethereum 2.0 will happen. But recent reports indicate that final testing is already underway. The good news is that the possible drop will rebound faster than other dips.
Why Ethereum 2.0 is a good thing?
Although the merge towards Ethereum 2.0 is a high-impact event that will increase volatility for ETH, it is actually a very good thing. After all, the biggest challenge for Ethereum has always been the slow speed of its network and the high gas fees.
A move towards Ethereum 2.0 will fix this. It would mean now that more apps and projects will come on Ethereum. This will have a huge impact on the chain and its future growth.
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