Ethereum (ETH) Pre-Merge Excitement Can Be Dangerous for Market, Here’s Why

Please fol­low and like us:
Pin Share


article image
Vladislav Sopov

Block­Tow­er Cap­i­tal vet­er­an Avi Fel­man shares some thoughts on BTC, ETH and alt­coin per­for­mance ahead of Merge activation

Con­tents

Sea­soned trad­er and hedge fund man­ag­er Avi Fel­man claims that cryp­tocur­ren­cy mar­kets are in a “lucra­tive” sit­u­a­tion that will not nec­es­sar­i­ly end good.

Market is based on bid for Ethereum (ETH): Indicators

In his recent tweet, Mr. Fel­man shared his con­cerns about the ongo­ing mar­ket excite­ment. He attrib­ut­es it to the expec­ta­tions of hold­ers before the main­net acti­va­tion of the Merge update for Ethereum (ETH).

He opined that such an obser­va­tion can be con­firmed by pale per­for­mance of both Bit­coin (BTC) and major alt­coins. Com­pared to the mes­mer­iz­ing Ethereum (ETH) upsurge, dig­i­tal gold is under­per­form­ing in the last days.

Such sit­u­a­tions look “lucra­tive” but are not always good for midterm per­for­mance of cryp­to mar­kets. For instance, Mr. Fel­man added, we can see the EIP-1559 acti­va­tion and its effect on the Ethereum (ETH) price.

Ads

By press time, Ethereum (ETH) is strug­gling with the $2,000 lev­el unseen since ear­ly May; the sec­ond cryp­tocur­ren­cy is up 5.4% in the last 24 hours.

Merge is coming earlier than expected

Bit­coin (BTC) failed to con­quer $25,000 and sits at $24,800, being 2.9% up. The net cap­i­tal­iza­tion of cryp­to mar­kets is $1,225 bil­lion, the indi­ca­tor added 3.1% in the last 24 hours.

As cov­ered by U.Today pre­vi­ous­ly, the Ethereum (ETH) net­work is going to acti­vate the Merge update on Sep­tem­ber 15. It is four days ear­li­er than was pre­vi­ous­ly announced by its core devs.

The Ethereum Merge will allow the net­work to replace the proof-of-work (PoW) con­sen­sus with a proof-of-stake (PoS) one and become more eco-friend­ly and resource effi­cient. Many experts call the Merge acti­va­tion the most impor­tant event in cryp­to in 2022.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *