The Ethereum merger is set to be completed within a few hours from now, and there are speculations that once the merger is completed, ETH will decline. This is because more traders are opting to short derivatives and several experts fear that this will lead to a ‘buy the rumor, sell the news kind of event. This means that people hype up a certain event in order to raise the prices and then, soon after, sell their gains- leading to massive crashes.
At the time of publication, Ethereum is changing hands at $1,591 after a drop of 8.59% over the past 24 hours. Bitcoin is down 10.79% in the last 24 hours and is trading at $20,154.
Positive Impact To Take Time
As per Lark Davis, a popular influencer and trader, the upcoming Ethereum merger is actually a bullish event as this will lead to a huge drop in ETH’s energy consumption. However, he claims that this needs time, hence, ‘sell the news’ might occur and pull back the price.
This approach has been popular in the crypto space of late. Many analysts predict that the ETH merger will certainly be beneficial, but the positive effects will take time to reflect properly. However, there are some key factors that the merger fails to look at, such as wait times and high gas charges. Ethereum co-founder Vitalik Buterin has claimed that his team has developed a four-stage plan to deal with such issues.
