Why ETH Will Fall Right After The Merge?
In just over a day, the Ethereum Merge will go live. Many experts predict that the merger will be a highly positive event for Ethereum and the cryptocurrency community.
However, as more traders sell Ether derivatives, analysts fear that the merger will be a "Buy The Rumor, Sell The News" scenario.
As the Merge approaches, Ethereum prices are plummeting drastically. Despite not dropping as fast as Bitcoin, Ethereum has dropped by 7% in the last 24 hours.
ETH Merge Price Prediction
Buy the rumor, sell the news refers to when traders position themselves to profit on the hype around an event and then sell when the event occurs. This frequently occurs when the hype around an event exceeds the actual outcome.
Lark Davis, a prominent cryptocurrency influencer and trader, discusses why the Ethereum merger may fit under this category. He considers the merger to be a fundamentally positive development. He highlights the massive reduction in energy use and emissions, as well as the deflationary aspect of the merger, as reasons why Ethereum will eventually surge.
However, most of these accomplishments, according to Davis, will take time to take effect. As a result, sell the news effect may be in play. Quinten Francois, a well-known crypto influencer and trader, claims that following the merger, Ethereum would fall in value in comparison to Bitcoin. However, a rapid recovery might be anticipated following that.
Why Ethereum Merge Outcomes Will Take Time
Despite having tremendous long-term potential, the merger will require time to realize its objectives. Furthermore, the merger fails to address some of Ethereum's primary concerns. For example, it does not address the long waiting times and high gas fees.
Ethereum's founder, Vitalik Buterin, has sketched out a lengthy four-phase strategy to overcome these challenges.
More importantly, if Ethereum miners attempt to hard fork Ethereum, the entire ecosystem may suffer. At the time of writing, the price of Ether (ETH) is trading at $1,600, down 6.5% in the last 24 hours.
