What is the next step for Bitcoin and the crypto market after the Ethereum merger ends?

The Ethereum merger got here and went, leaving buyers to consider what the subsequent improvement out there would possibly appear to be. in Cointelegraph Twitter area with Capriole founder Charles EdwardsThe analyst acknowledged that the thrill across the Ethereum consolidation and the bullish worth motion was considerably holding hope throughout the market. Now that the occasion has come and gone, the cryptocurrency market has offered out, with Bitcoin (BTC) buying and selling beneath $20,000 and Ether (ETH) beneath $1,500.

Finally, new narratives and market traits will emerge, and if the basics are right, merchants will commerce cash as these new leaders emerge.

Let’s take a look at some potential traits.

The place will ex-ETH miners go?

The Ethereum community has efficiently switched to a Proof of Stake (PoS) mannequin, which signifies that miners usually are not of their pockets however nonetheless have their very own GPUs and ASICs for mining infrastructure. It’s attainable that some miners will select to mine in a distinct chain quite than promoting their gear.

Whereas they have not settled on any explicit chain but, it seems that Ravencoin, Flux, Ethereum Basic, and Ergo are the primary. Throughout the merger, every community noticed its hash fee rise to an all-time excessive, as proven beneath.

ETC hash. Supply: 2Miners
ERG fragmentation. Supply: 2Miners
RVN Fragmentation. Supply: 2Miners
FLUX Fragmentation. Supply: 2Miners

The costs of every altcoin have additionally risen over the previous month, with Ravencoin’s RVN up 169%, Ergo’s ERG including 132%, Flux’s up 156%, and Ethereum Basic’s ETC up 135% up to now 90 days.

Curiously, the hash fee and worth fell sharply on September fifteenth, and on the time of writing, solely Flux and RVN seem like on a restoration. Over the approaching weeks and months, will probably be attention-grabbing to see which of the miners within the community would possibly select as their new dwelling and the impression that has on the worth of the cryptocurrency.

The universe continues to develop

The Cosmos ecosystem continues to develop, which seems to be attracting consumers to ATOM. Since bottoming at $5.50 on June 18, ATOM is up 137.5% and is presently buying and selling above $16. The evaluation signifies that buyers see the soon-to-be-launched liquidation acquisition, ATOM getting used as collateral for the stablecoin mint, the launch of Cosmos Hub 2.0 and the eventual restoration of decentralized finance normally as long-term bullish components for ATOM’s worth.

Purchase the rumor, promote the information, or purchase a dip?

Whereas the present worth motion of ETH is much less bullish than the consolidation advocates and ETH bulls had been hoping for, the precise swap to PoS seems to have been profitable, and maybe over time, the advantages of PoS will translate into an upward worth motion from ETH. In line with Jarvis Labs co-founder Ben Lilly, the “Joe Cool motion” for ETH buyers gained’t be “caught within the coming days. The primary participant prone to do any sort of loopy exercise is the miner. This can be a one-time occasion and it gained’t final lengthy.” “.

Lilly defined that:

“Joe Cool’s transfer is to sit down there and purchase any sort of hyper-emotional motion. Then sit again and loosen up.”

Sooner or later, Ether might expertise a provide shock and presumably grow to be deflationary. Staking additional secures the community whereas offering assured returns on the property deposited. In a market caught in a downtrend, a protected and predictable return might grow to be extra enticing.

Basically, Lilly suggests that it’ll take a while for the keenness surrounding the merger to settle and buyers start to benefit from the advantages that the PoS Ethereum community can provide.

What about bitcoin?

On this week’s Bitcoin evaluation, I talk about how not a lot has modified with the worth of Bitcoin. Its worth has been vary sure within the $17,600-$24,400 vary for the previous three months, and all rallies from each excessive vary since March 29 have been capped by the 200-day shifting common and the higher resistance trendline extending from Bitcoin November 2021, the all-time excessive at $69,400.

BTC/USDT 1-day chart. Supply: TradingView

Whereas continued consolidation throughout the present vary can (and often will) be useful for an altcoin, macro tensions might proceed to weigh on the cryptocurrency and inventory markets. The new print of the CPI from September 12 may result in sharper worth hikes by the US Federal Reserve, and the doubtless detrimental impact on inventory costs may have an much more extreme spillover impact on crypto costs.

Due to this, buyers stay extremely danger averse for many cryptocurrencies, and a repeat of the rejection, a long-term descending trendline, and a retest of the $19,000 help may finally result in a breakdown of the annual swing low.

This article was written by Large Smokey, writer of The Humble Pontificator Substack and Cointelegraph’s resident publication writer. Each Friday, Large Smokey will write market insights, guides, analyzes and early chicken analysis on potential rising traits within the cryptocurrency market.

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