The cryptocurrency is encountering heavy resistance northwards of $1,900. This comes as it attempts to move further into lost territories. 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.
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:
As some FOMO has begun to gain some control over the markets with the merger and ETH 2.0, Ethereum really is the asset that’s carrying them. Expect $ETH to continue moving towards $2.5K, and $BTC toward the $30K area in the next month.
Some market participants are wondering if “The Merge” will operate as a “buy the rumor, sell the news” event. In other words: Will Ethereum rally in September but then see sharp falls after the buzz about the event diminishes?
NewsBTC previously reported that there are signs in the market which could back this theory. The lack of large-scale accumulation and Bitcoin’s slow pace of growth are two of these signs.
If Bitcoin and Ethereum both move with the support of whales, traders may be more positive about possible price movements that will last. In the meantime uncertainty will still reign.
What Could Push Ethereum Higher Before “The Merge”
Arthur Hayes was the former CEO at BitMEX sharedThere has been a change in dynamics regarding ETH futures contract. This investment instrument has been priced lower than the spot market.
Hayes speculated that this is happening because there are a lot of traders hedging their position before “The Merge”. The event will be successful if institutions take a neutral long position in Ethereum. Retails are increasing their buying pressure. This could create a series of events which can lead to a bullish trend for Ethereum’s prices.
(…) the pressure is on the buy side, and market makers are short futures and must go long spot. Their position pre-merge could be reversed. If the merger goes smoothly, this is a positive feedback loop which could lead to higher spot prices. This is another structural positive reason $ETH may rise in the final quarter of 2018.