Will “The Merge” Be A Buy The Rumor Sell The News Event For Ethereum?
August 11 2022 - 4:35PM
NEWSBTC
Ethereum is coming into heavy resistance north of $1,900 as the
cryptocurrency attempts to push further into previously lost
territory. Today, ETH core developers announced a tentative date
for the upcoming “Merge” event set for September 15 to 16, 2022,
which could bolster bulls’ attempts to climb higher. Related
Reading: Bitcoin aSOPR Fails Retest Of Historical Bull-Bear
Junction At the time of writing, Ethereum’s (ETH) price trades at
$1,888 with 3% profits in the last 24 hours and a 17% profit in the
last week. “The Merge” is the event that will complete Ethereum’s
migration to a Proof-of-Stake (PoS) consensus. It’s one of the most
highly anticipated events in the space due to its implications for
the price of ETH, and one of the main reasons why the bullish
momentum could extend in the coming months. Analyst Michaël van de
Poppe said the following on “The Merge”, its short-term
implications for the crypto market, and why ETH’s price could
continue to see bullish momentum: Honestly, Ethereum is the actual
asset that is carrying the markets, as some FOMO is starting to get
some grip on the markets with the merge and ETH 2.0 coming up.
Through that, expecting to see $ETH continue towards $2.5K and $BTC
towards the $30K region in the coming month. Some market
participants are wondering if “The Merge” will operate as a “buy
the rumor, sell the news” event. In other words, whether Ethereum
will rally into September only to see a sharp decline after the
hype around the event mitigates. As NewsBTC reported earlier, the
market is showing signs that could support this theory. In
particular, the lack of accumulation from large investors, and
Bitcoin lagging behind the rest of the crypto market. Traders might
be more confident about a potential sustainable price action if
Bitcoin and Ethereum move in tandem with support from whales. In
the meantime, uncertainty will remain king. What Could Push
Ethereum Higher Before “The Merge” Former CEO at BitMEX Arthur
Hayes shared a shift in dynamics for ETH futures contracts. The
price of these investment instruments have been lagging the spot
market. Related Reading: Market Sentiment Shoots Up As Bitcoin Eyes
$25,000 Hayes speculated that this is happening because there are a
lot of traders hedging their position before “The Merge”. If the
event is successful, and institutions have taken a neutral long
position on Ethereum with retails increasing their buying pressure,
a chain of events could contribute to a more bullish continuation
for the price of Ethereum: (…) the pressure is on the buy side, and
market makers are short futures and must go long spot. A reversal
of their positioning pre-merge. This is a positive feedback loop
that leads to higher spot prices should the merge go smoothly on
Sept 15th. If you believe the merge is going to succeed, then this
is yet another positive structural reason why $ETH could gap higher
into the end of the year.
Maker (COIN:MKRUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Maker (COIN:MKRUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024