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Ethereum (ETH/USD) – Ethereum Price May Decouple From Bitcoin and Other Cryptos Post-Merger: Chain Analysis

The price of Ethereum ETH/USD could move independently from other cryptocurrencies after the merger, according to blockchain analytics firm Chainalysis.

What happened: In a recent report Looking at on-chain indicators to monitor ETH’s transition to proof-of-stake, Chainalysis said ETH price could decouple from Bitcoin BTC/USD and other cryptocurrencies.

“Ether’s price may decouple from other cryptocurrencies after The Merge, as its staking rewards will make it similar to an instrument like a bond or a commodity with a carry premium,” the company said.

Predictions that ETH staking rewards will reach 10% to 15% per year and the potential for ETH price to increase could make staking an “attractive bond alternative” for institutional investors, Chainalysis wrote. .

“For comparison, one-year U.S. Treasury yields sit at 3.5% in September 2022, although that number has risen over the past year,” the analysts said in the report.


Earlier this week, the ETH/BTC ratio hit a 2022 high of 0.084 amid traders’ anticipation around the upcoming merger. Crypto intelligence firm Arcane Research noted that Bitcoin dominance has also reached an all-time high over the past few weeks.

The highly anticipated merger is expected to go live between September 13-15. Creator of Ethereum Vitalik Buterin urged network participants to upgrade their customers as the date approaches.

Price action: At press time, ETH was trading at $1,627, up 6.9% in the past 24 hours, while BTC was trading at $19,313, up 2.31% over the same period, according to data from BenzingaPro.