Ethereum 2.0’s transition could initially introduce volatility to ETH’s value. Staking locks up ETH, but early adopters may unstake and sell once rewards or market conditions shift, flooding the market with supply. Inflation drops significantly under PoS, which is bullish long-term, but uncertainty around staking participation rates and network security could spook investors in the short term. Over time, as staking stabilizes and inflation remains low, ETH’s value should trend upward, assuming adoption grows.