A weekly bullish trend in the cryptocurrency market is starting to wake up bullish crypto investors, and the successful launch of Ethereum “merger” on March 15 on the Kiln test network makes the community excited about the upcoming transition to Proof-of-Stake (POS).

Data from Cointelegraph Markets Pro and TradingView show that since the successful launch of Kiln, the Ether price has risen 25% from $ 2,500 to a daily high of $ 3,193 on March 25 as traders look to secure their positions before the merger.

ETH / USDT 1-day chart. Source: Trading View
Here’s what market analysts believe may happen to the price of Ethereum as a merger approaches, and how the transition to a POS may affect the price in the long run.

Clear eruption to the underside
Ethereum’s price reversal over the past two weeks was briefly reviewed by cryptanalyst Justin Bennett, who published the following chart highlighting the trend reversal that has taken place.

ETH / USDT 1-day chart. Source: Twitter
said Bennett

“The first increase in Ethereum since the beginning of November 2021. Probably nothing.”
The merger will be an optimistic event
A deeper analysis of the impact of the upcoming Ethereum merger on the price was discussed by analysts from the independent global crypto- and macro-research firm MacroHive, who noted that the merger “would be bullish for Ethereum.”

According to MacroHive, “the prospect of earning passive revenue from Ethereum will bring more investors into the room,” and moving to proof of ownership will “reduce Ethereum’s power consumption by 99.95%.”

This in turn will help bring more institutional resources into the Ethereum ecosystem as ESG concerns are reduced by extracting / proving the energy consumption of the business.

The merger will also have a significant impact on the circulating supply of Ether, as the net issue will suffer a significant drop after completion as the block rewards are replaced by the Ether share income.

Macrohive sa:

“This, combined with the continued burning of Ethereum, should lead to a contraction of Ether, and in general it should be bullish.”
Related: Cryptocurrency Rises to $ 2 Trillion in Market Capital as Institutions Prepare to Enter

Merger could reverse Bitcoin halving
A final insight into the implications of the upcoming merger was given by options trader and Twitter user McKenna, who posted the following tweet comparing the effect of the merger with the effect of Bitcoin halving.

Source: CoinTelegraph