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Eth Hits $2,000, but Data From ETH Derivatives Indicates,

13-Aug-2022 By: Sudeep Saxena
Eth Hits $2,000, but

In the past 24 hours, Ethereum (ETH), the second-largest

 cryptocurrency in the world, has soared another 5%, reaching $2,000 levels for the first time since May 2022.

Since the start of July, the price of ether (ETH) has been sharply rising and has increased by almost 100% in the last 40 days. The latest price increase is due to the upcoming The Merge upgrade in September 2022.

This high could continue right up until the Merge event. According to data, interest in ETH Options has officially surpassed interest in BTC for the first time ever.

Ethereum Investors Need to Remain Wary Right Now

Data from the derivatives market, however, indicates that traders anticipate a price decline following the incident. Analysts predict that this could develop into a "sell-the-news" type of situation.

Deribit data indicates that the September call options will rise to $2,200, dwarfing the September put options at the moment. However, the market for call options sharply declines on September 15–16, one month after the scheduled update. This shows that after a large advance in a short period of time, traders are prepared to have higher downside protection and hedge their positions.

Vitalik Buterin, a co-founder of Ethereum, on the other hand, thinks that the Merge upgrade hasn't yet been factored into the price. How well ETH holds up after the Merge event will be interesting to witness. The inflation rates in the US and several regions of Europe are still very high, and the global macros continue to indicate instability.

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