Ethereum is coming under heavy resistance north of $1,900 as the cryptocurrency attempts to move further into the previously lost zone. Today, the ETH Core developers announced a tentative date for the upcoming “merge” event scheduled for September 15-16, 2022, which could strengthen the bulls’ attempts to climb higher.
At the time of writing, Ethereum (ETH) price is trading at $1,888 with a 3% gain over the past 24 hours and a 17% gain in the last week.
“The Merge” is an event that will complete Ethereum’s migration to Proof-of-Stake (PoS) consensus. This is one of the most 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 pick up in the coming months.
Analyst Michael van de Poppe Told Following on “The Merge”, its short-term implications for the crypto market, and why the price of ETH could look bullish:
Honestly, Ethereum is the real asset that is driving the markets, as some FOMO merges and the arrival of ETH 2.0 are starting to take some hold of the markets. Through this, it is expected to see $ETH towards $2.5K and $BTC towards $30K area in the coming months.
Some market participants are wondering whether “The Merge” will work as a “buy rumour, sell news” phenomenon. In other words, will Ethereum rally in September, only to see a sharp decline after the hype surrounding the event subsides.
As previously reported by NewsBTC, the market is showing signs that could support this theory. Specifically, the lack of accumulation from large investors, and bitcoin is lagging behind the rest of the crypto market.
If Bitcoin and Ethereum move in tandem with the support of whales, traders may be more confident about a potential sustainable price action. In the meantime, uncertainty will remain king.
What could push Ethereum before the “merge”
Arthur Hayes, former CEO of BitMEX share Change in dynamics for ETH futures contracts. The price of these investment instruments is lagging behind the spot market.
Hayes speculates that this is happening because too many traders are hedging their positions prior to “The Merge”. If the event is successful, and institutions take a neutral long position on Ethereum and retailers increase their buying pressure, a series of events could contribute to a more bullish continuation for the price of Ethereum. Is:
(…) The pressure is on the buy side, and market makers are short futures and should go long. The reverse of their pre-merge position. This is a positive feedback loop that leads to higher spot prices if the merge goes smoothly on September 15th. If you believe the merger will be successful, that is another positive structural reason why $ETH could make a bigger difference towards the end of the year.