In a note released Friday by Bank of America, Ethereum He said the effects of the technical upgrade Merge, which will turn it into a Proof of Stake network, are better understood by investors.
However, according to analysts, the price rise, which lasted from mid-July to mid-August, may continue to lose its effect.
“Market Share of Blockchains Like Binance Smart Chain, Tron, Avalanche and Solana Rivaling Ethereum May Increase”
In addition, the investment bank expects rival blockchains such as Binance Smart Chain (BSB), Tron (TRON), Avalanche (AVAX) and Solana (SOL) to gain market share until Ethereum overcomes its current woes.
BofA analyst Alkesh Shah said in a note to customers:
“Investors have probably realized that the transition of Ethereum to Proof of Stake (PoS) will not address scalability concerns or high transaction fees.”
Analysts emphasized that while Merge is likely to lead to a short-term price surge in Ethereum, the long-term outlook for the asset remains weak due to weak macroeconomic sentiment and Bitcoin technical data pointing to the bearish.
Friday cryptocurrency and stock markets plunged after Fed Chairman Jerome Powell’s long-awaited keynote speech at the Fed’s Wyoming conference announced economic tightening.
However, at the time of writing, Bitcoin price is trading at $ 20,704, with a decrease of about 4% in the last 24 hours, while Ethereum is at $ 1,563, losing 8% in the same time frame.
*Not investment advice.
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