Is it time to buy Ether or is it better to wait?

Just hours after the Ethereum Merge process was completed, its cryptocurrency, Ether, suffered a value drop of at least 10%, and on the last day, it also fell by at least 6%. Before the event, the expectation had made the value grow. Despite everything, the directors of the parent company of Ethereum affirm that the Merge was a complete success, despite the decrease in value of Ether, in addition to other cryptocurrencies that depend on the Ethereum blockchain.

It is necessary to learn how to draw trends and profit lines from the financial market, to know what the behavior of the market could be in the coming days so that the market can be analyzed in a completely objective way, currently, the drop in value responds to an adaptation period.

The cryptocurrency market fell back after the Merge

The Ethereum Merge is arguably the biggest crypto market event since the Bitcoin halving a few years ago. The market reaction back then was similar, but then the biggest bull run in the history of the cryptocurrency market was triggered, revolutionizing the financial market, and leading to many changes in it.

Although this parallelism cannot be applied in this case, since it is a completely different event, the story likely unfolds similarly. Of course, Ether is not expected to cost $60,000 per token, like Bitcoin at its best, but a sustained growth of the asset is expected to occur at some point in the medium term. The new setback is attributed to the cessation of expectations and the beginning of a period of uncertainty. This drop, however, has cast doubt on the possible lack of ability of the crypto active to appreciate in the long term, so investments in this cryptocurrency should be made with caution and with a prior analysis that allows for the recognition of favorable patterns for the investor.

The Merge ends traditional mining

Cryptocurrency mining is one of the pillars of the value system of cryptocurrencies such as Bitcoin, and Proof-of-Work, which according to critics is highly polluting due to its inefficient use of energy. The Proof-of-Stake that Ethereum adopts would reduce 99% of the environmental impact of Ether. Economically, for Ethereum, however, it is a long shot, as the event could have caused millions to lose their money, however, this did not happen.

The miner system allows to obtain rewards by validating blockchain user transactions, these rewards are, in fact, new token fragments, and in theory, the difference between proof-of-stake and proof-of-work is the component they use to perform such validation, the first uses the hard drive and the second the graphics card, but the rewards will be the same. This means that the rate of creation of new tokens will not change, so the asset should not be devalued, at least not for reasons of excess liquidity.

Either way, it is necessary to pay attention to the trend and the next actions of the Ethereum executives, as well as the new updates that are released in the coming months, to find opportunities to monetize the Ether market.