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

Ethereum is coming into dense absorption northbound of $1,900 arsenic the cryptocurrency attempts to propulsion further into antecedently mislaid territory. Today, ETH halfway developers announced a tentative day for the upcoming “Merge” lawsuit acceptable for September 15 to 16, 2022, which could bolster bulls’ attempts to ascent higher.

At the clip of writing, Ethereum’s (ETH) terms trades astatine $1,888 with 3% profits successful the past 24 hours and a 17% nett successful the past week.

ETH’s terms with important gains connected the 4-hour chart. Source: ETHUSDT Tradingview

“The Merge” is the lawsuit that volition implicit Ethereum’s migration to a Proof-of-Stake (PoS) consensus. It’s 1 of the astir highly anticipated events successful the abstraction owed to its implications for the terms of ETH, and 1 of the main reasons wherefore the bullish momentum could widen successful the coming months.

Analyst Michaël van de Poppe said the pursuing connected “The Merge”, its short-term implications for the crypto market, and wherefore ETH’s terms could proceed to spot bullish momentum:

Honestly, Ethereum is the existent plus that is carrying the markets, arsenic immoderate FOMO is starting to get immoderate grip connected the markets with the merge and ETH 2.0 coming up. Through that, expecting to spot $ETH proceed towards $2.5K and $BTC towards the $30K portion successful the coming month.

Some marketplace participants are wondering if “The Merge” volition run arsenic a “buy the rumor, merchantability the news” event. In different words, whether Ethereum volition rally into September lone to spot a crisp diminution aft the hype astir the lawsuit mitigates.

As NewsBTC reported earlier, the marketplace is showing signs that could enactment this theory. In particular, the deficiency of accumulation from ample investors, and Bitcoin lagging down the remainder of the crypto market.

Traders mightiness beryllium much assured astir a imaginable sustainable terms enactment if Bitcoin and Ethereum determination successful tandem with enactment from whales. In the meantime, uncertainty volition stay king.

What Could Push Ethereum Higher Before “The Merge”

Former CEO astatine BitMEX Arthur Hayes shared a displacement successful dynamics for ETH futures contracts. The terms of these concern instruments person been lagging the spot market.

Source: Arthur Hayes via Twitter

Hayes speculated that this is happening due to the fact that determination are a batch of traders hedging their presumption earlier “The Merge”. If the lawsuit is successful, and institutions person taken a neutral agelong presumption connected Ethereum with retails expanding their buying pressure, a concatenation of events could lend to a much bullish continuation for the terms of Ethereum:

(…) the unit is connected the bargain side, and marketplace makers are abbreviated futures and indispensable spell agelong spot. A reversal of their positioning pre-merge. This is simply a affirmative feedback loop that leads to higher spot prices should the merge spell smoothly connected Sept 15th. If you judge the merge is going to succeed, past this is yet different affirmative structural crushed wherefore $ETH could spread higher into the extremity of the year.