Ethereum Will Rise As the Transition to Proof-of-Stake Nears in July

ETH crypto - Ethereum Will Rise As the Transition to Proof-of-Stake Nears in July

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Ethereum (ETH-USD) is forecast to complete a transition to using proof-of-stake (PoS) very soon. ETH crypto is on a countdown. You can see this at the website, where a “difficulty bomb” is set for June 28. The exact date is not final. But it is reasonable to expect that ETH crypto could rise as the countdown gets closer.

As a result, Ethereum will rid itself of crypto mining like Bitcoin (BTC-USD) uses to validate transactions. This method will involve far less electricity than the proof-of-work (PoW) that Ethereum, like Bitcoin, presently uses. The difficulty bomb, as seen on the wenmerge website, will make mining on the Ethereum platform extremely difficult.

Date Not Set for ETH Crypto Transition

As a result, many existing miners are now considering and following through with transitioning to becoming stakers rather than miners. The timeline is not yet final. Fortune magazine argues that after a test set for April 22, there will be more clarity for when the exact merge to using proof-of-stake will be set.

In fact, they cite one analyst, Ethereum developer Tim Beiko, who predicts that the merge will happen in July, including late July. He also said that’s a “rough estimation.” Apparently, a preliminary test on April 11 also went well.

Right now Ethereum trades for just under $3,000 ($2,967), as of Friday, April 22. This is after it has fallen 38.3% from its peak in early November (Nov. 7, 2021) at $4,812 per ETH crypto. Moreover, Ethereum is down 21.2% YTD. This implies it will have to rise by over 27% just to get back to even for the year.

Investors will likely spend more time thinking about the beneficial effects of the move to PoS sometime this summer. That includes potentially lower transaction fees, faster transaction times and generally more positive views of the focus of Ethereum as a platform for smart contracts. This will likely have a beneficial effect on ETH crypto and help move it back to par with last year.

On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Mark Hake writes about personal finance on, and

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