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Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

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

Reynaldo Marquez
Reynaldo Marquez
2 years ago
2 mins read
Ethereum price

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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.

Ethereum ETH ETHUSDT
ETH’s price with important gains on the 4-hour chart. Source: ETHUSDT Tradingview

“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.

Ethereum ETH ETHUSDT
Source: Arthur Hayes via Twitter
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.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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