“The Merge” To Be A Buy The Rumor Sell The News Event For Ethereum?

Ethereum is facing heavy resistance north of $1,900 as the cryptocurrency attempts to push into the previously lost territory. ETH core developers today announced a tentative date for the upcoming “merger” event scheduled for September 15-16, 2022, which could boost bulls’ attempts to climb higher.

At the time of writing, Ethereum (ETH) price is trading at $1,888 with a gain of 3% in the last 24 hours and a gain of 17% in the last week.

ETH price with significant gains on the 4 hour chart. source: ETHUSDT TradingView

A “merger” is the event that will complete the migration of Ethereum to a Proof-of-Stake (PoS) consensus. It is one of the most anticipated events in the space given its implications for the price of ETH, and one of the main reasons why the bullish momentum could extend in the coming months.

Analyst Michael van de Poppe He said The following in the “consolidation,” its short-term implications for the cryptocurrency market, and why ETH price could continue to see bullish momentum:

Honestly, Ethereum is the actual asset holding the markets, as some FOMOs started to dominate the markets with the advent of ETH 2.0. With that, we expect $ETH to continue towards $2.5K and BTC towards $30K next month.

Some market participants are questioning whether the “merging” will act as a “rumor-buying and news-selling” event. In other words, whether Ethereum will rally in September only to see a sharp drop after the hype around the event subsides.

Like NewsBTC mentioned Earlier, the market showed signs that could support this theory. In particular, the lack of accumulation from large investors, and Bitcoin is lagging behind the rest of the cryptocurrency market.

Traders may be more confident about a potential sustainable price movement if Bitcoin and Ethereum move in tandem with whale support. In the meantime, uncertainty will remain dominant.

What could push Ethereum higher before a ‘merger’

Former BitMEX CEO Arthur Hayes subscriber A shift in the dynamics of ETH futures. The price of these investment vehicles has been lagging behind the spot market.

Source: Arthur Hayes via Twitter

Hayes speculated that this is happening because there are a lot of traders hedge their positions before the “merging”. If the event is successful, and institutions take a long-term neutral stance on Ethereum as retail buying pressure increases, a series of events could contribute to a bullish continuation for the Ethereum price:

(…) The pressure is on the buy side, and market makers are short futures and should buy spot. Reverse their position before merging. This is a positive feedback loop that will lead to a higher spot price if the consolidation goes smoothly on September 15th. If you think the consolidation will succeed, this is another positive structural reason to make the gap between $ETH higher until the end of the year.

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