Ethereum's merge hype boosts price 40%.

Ethereum's price jumped over the weekend when the network set a launch date for "The Merge" Time will tell if ethereum's price continues to rise or falls to historical lows, analysts say.

Ether, Ethereum's native cryptocurrency, gained 40% in the previous four days, quickly recovering from last week's severe market slump. The second-largest cryptocurrency is trading at $1,500, up from $1,000 just days earlier.

While ether's price is down 75% from its November peak, investors are watching every move leading up to the merging and buying the dip ahead of it. Many expect ethereum's Sept. 19 software update might enhance its value by making the network more efficient, faster, and cheaper to operate.

Whether ethereum lives up to its promises needs to be seen, says Martin Hiesboeck, head of blockchain and crypto research at cryptocurrency exchange platform Uphold.

“While ethereum's price behavior gives hope for the market to shift in the next few weeks, the quick surge is primarily prompted by hype and a lack of comprehension of what 'The Merge' would do,” Hiesboeck argues.

How will the Ethereum merge affect crypto investments?

Recent chatter about ethereum's integration has boosted crypto market optimism. The primary ethereum network is scheduled to switch from proof-of-work to proof-of-stake in mid-September, though this could be postponed.

"It's been announced six times before; 'this is it' may be hopeium," Hiesboeck says.

Ethereum has surged about 40% since the news, and bitcoin is above $22,000. Smaller altcoins followed. ethereum is getting closer to shifting to a new paradigm that will lessen its environmental effect and enhance transaction speed.

This might boost ethereum's price and reward early investors. After the integration, some experts anticipate ethereum's price might double or double. After the upgrade, altcoin prices may rise.

“Many significant investors, from funds to private trusts, have ethereum on their radar and are prevented from investing in other chains,” adds Hiesboeck.

Wendy O, a crypto expert and educator, says ethereum's technical charts "look quite good," but it can only hit $1,700 if it stays above $1,294 in the next few days or weeks.

Ethereum investment?

Financial advisors advise keeping no more than 5% of your wealth in crypto. Before investing in crypto, pay off debt, invest in a traditional retirement account, and build an emergency fund. Crypto is a dangerous and speculative asset class, therefore only invest what you can afford to lose.

If you've prioritized other financial elements and are willing to risk, ethereum could be a good bet. Ethereum's NextAdvisor Investability Score is 71 out of 100, up roughly 1% in 24 hours. Experts consider ethereum one of the safest crypto investments, along with bitcoin, even if the combine doesn't return it to its 2021 high price.