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

Vladislav Sopov

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

Contents

  • Market is based on bid for Ethereum (ETH): Indicators
  • Merge is coming earlier than expected

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

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 the 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.

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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.

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