Ethereum enters strong 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 next “Merge” event scheduled for September 15-16, 2022, which may bolster the bulls’ attempts to climb higher.
At the time of writing, Ethereum (ETH) price is trading at $1,888 with 3% profit in the last 24 hours and 17% profit in the last week.
“The Merge” is the 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 may continue in the months to come.
Analyst Michaël van de Poppe said the following on “The Merge”, its near-term implications for the crypto market, and why ETH price may continue to experience bullish momentum:
Honestly, Ethereum is the real asset that is carrying the markets, as some FOMO is starting to get some hold on the markets with the merger and the upcoming ETH 2.0. Thanks to this, we expect to see $ETH continue towards $2.5,000 and $BTC towards the $30,000 region in the coming month.
Some market participants wonder if “The Merge” will work as a “buy the rumour, sell the news” event. In other words, if Ethereum will rally in September to see a steep drop after the hype surrounding the event has died down.
As NewsBTC reported earlier, the market is showing signs that could support this theory. In particular, the lack of accumulation by large investors and the lag of Bitcoin compared to the rest of the crypto market.
Traders might be more confident of possible sustainable price action if Bitcoin and Ethereum move in tandem with whale support. In the meantime, uncertainty will remain queen.
What Could Push Ethereum Higher Before “The Merge”
Former BitMEX CEO Arthur Hayes share a change in momentum for ETH futures. The price of these investment instruments has lagged behind the spot market.
Hayes speculated that this happens because there are a lot of traders who hedge their position before “The Merge”. If the event is successful and institutions have taken a neutral long position on Ethereum, with retailers increasing their buying pressure, a chain of events could contribute to a more bullish continuation of Ethereum’s price:
(…) the pressure is on the buyer side, and the market makers are short futures and must be long. A reversal of their positioning before merger. This is a positive feedback loop that leads to higher spot prices if the merger goes smoothly on September 15. If you think the merger is going to be successful, this is another positive structural reason why $ETH could break out higher by the end of the year.