Ethereum price just pulled off a massive leg up as the US announced fresh CPI rates which were lowered to 8.5%. All the major cryptos received a significant bullish push as BTC price soared beyond $24,000 and also stands firmly above $24,600 at the press time. On the other hand, the ETH price broke above the crucial resistance, setting up a higher target for the month-end.
The core element of Ethereum 2.0, the transition from PoW to PoS called merging, is fast approaching. At the same time, a series of testnets went live without significant complications, including some testnet upgrades. In a recent update, Goerly, the last testnet before the mainnet merger, was merged with PoS consensus, which was a huge success.
Therefore, raising the speculation of the Mainnet merger scheduled in September to accomplish smoothly without any technical complications.
Secondly, another catalyst that aims to bring the price of ETH closer to $3000 is the upcoming Ethereum triple halving. Like Bitcoin, Ethereum reduced the rewards of miners by 33%, 3x, making the asset more deflationary. This event is scheduled over the next 30 days which is expected to have a greater impact than Bitcoin.
Coming to the numbers, the halving will reduce the annual emission of new ETH from 4.3% to 0.43%, in simple terms, ETH issuance will drop from 13,000 to 1300 per day. Additionally, the transition from PoW to PoS will begin with the rewards for staking ETH. Lastly, the EIP 1559 which is constantly burning ETH in every transaction may speed up the ETH price rally.
Collectively, Ethereum currently appears to be in the foothills of a major explosion and so once ignited, it may hit highs and attain new highs long before Bitcoin.
