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Ethereum’s price soared over the weekend after the network announced a tentative launch date for its long-awaited software update, also known as “The Fusion”. But only time will tell if ethereum price will continue to rise or fall back to previous lows, experts say.

Ether, the native cryptocurrency of Ethereum, has risen 40% in the past few days, recovering quickly from the sharp market decline caused after the announcement of inflation data higher than expected released last week. The second largest cryptocurrency is currently trading above $1,500 – a significant increase from just a few days ago when it was trading closer to $1,000.

With the current price of ether still down 75% from its all-time high in November, investors are closely watching every step leading up to the merger and, in some cases, taking advantage of the market downturn by buying the drop that awaits. Many are predicting the massive Ethereum software update – scheduled for September 19 – could significantly increase its value as it promises to make the network more efficient, faster and cheaper to use.

Whether Ethereum delivers on its promise remains to be seen, especially after several delays over the years, says Martin Hiesboeck, head of blockchain and crypto research at Defenda cryptocurrency exchange platform.

“While Ethereum’s price action certainly gives hope that the overall market may turn a corner in the coming weeks, the sudden jump is primarily driven by hype and perhaps a lack of understanding of what ‘The Merge’ will actually do,” says Hiesboeck.

What will the Ethereum merger mean for your crypto investments?

There’s been a lot of buzz around the ethereum merger in recent days, which in turn has contributed to some bullish sentiment in the crypto market. A conference call between Ethereum developers last week revealed that Ethereum is expected to move from proof-of-work to proof-of-stake on its mainnet in mid-September, although it could be delayed again.

“It has already been announced six times in very similar wording; “that’s that one ‘maybe just hopium,'” Hiesboeck says.

Ethereum has climbed almost 40% since the announcement, and bitcoins rose more than 10%, trading above $22,000. Smaller altcoins have followed suit. There are several reasons why Ethereum’s latest merger announcement is a big deal: Ethereum is getting closer to transitioning to this new model, which will reduce its environmental impact and dramatically improve its transaction speed, among other improvements.

This, in turn, could drive the price of Ethereum up significantly and create lucrative returns for investors who got in early. Some experts say 2022 will be a “decisive year” for Ethereum, predicting that its price could double or quadruple after the merger. Related altcoins could also see price growth after the upgrade.

“The fact that many large investors – from funds to private trusts – have Ethereum primarily on the radar and are even barred from investing in other chains could very well drive prices up further in the short term,” says Hiesboeck.

Wendy O, Crypto Expert and Educator, Says “Things Are Looking Pretty Good” for Ethereum When Analyzing Technical Charts, But Can’t Hit $1,700 Unless It Manages to Stay Above $1,294 over the next few days or weeks.

Should you invest in Ethereum?

With any crypto investment, financial advisors warn you not to keep more than 5% of your portfolio in cryptocurrency. You should also prioritize repay the debtinvest in a traditional retirement accountand building your emergency fund before investing in crypto, no matter how tempting the hype. More than anything, experts say you shouldn’t invest more than you would be prepared to lose, because crypto is such a risky and speculative asset class.

If you have already prioritized other aspects of your finances and are willing to take some risk, Ethereum could be a solid bet. NextAdvisor Investability Score for ethereum is up almost 1% in the last 24 hours, with a score of 71 out of 100. Along with bitcoin, experts consider ethereum among the safest crypto investments, even if the merger does not lead to a back to the highest price ever it takes place at the end of 2021.

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