- Divergent viewpoints exist on the upcoming switchover of the Ethereum network to a PoS consensus network.
- Technical analyst Crypto Rover said the price of ETH would massively fall on the Merge day as traders unwind their positions.
- The ETH token trades at $1,657.56, with a 2.78% fall in the last 24 hours, while the network’s Merge is 19 days and 15 hours away.
There are differing opinions on the Ethereum network’s impending transition to a proof-of-stake (PoS) consensus network. Analysts like @DWhitmanBTC think that the lack of a supply cap and many changes in the monetary policy over time outweigh any possible benefits of PoS.
uLtRaSoUnD mOnEy
— Dick Whitmanaut ∞/21M 🇺🇸 (@DWhitmanBTC) August 24, 2022
Is #Ethereum even money?
If so, what’s the supply limit? What’s the monetary policy?
How can anyone trust that it won’t be changed?
Aside from the arguable long-term effect, July’s migration announcement positively impacted Ethereum’s price, pushing it slightly above $2,000 in early August. Technical expert Crypto Rover predicted that ETH would “drop so hard on the Merge day” due to traders closing out their holdings.
I think #Ethereum will drop so hard on the Merge day.
— Crypto Rover (@rovercrc) August 23, 2022
The whole anticipation is getting not bought up on the spot market but on the futures market.
Be warned.
However, the rapid decline that occurred on August 18 caught leveraged Ethereum purchasers off guard, and according to Coinglass statistics, the move caused $208 million in derivatives exchange liquidation.
While some reports suggested that ETH bears placed their bets below $1,600, data from Coinglass shows that call open interest (OI) on ETH is 18% higher than the put OI.
The 1.18 call-to-put ratio shows the dominance of the $685 million call (buy) against the $585 million put (sell) options. Cointelegraph analysts believe that as Ethereum stands near $1,650, most of these bearish bets will become worthless, stomaching a $150 million loss.
According to data available on CoinMarketCap, the ETH token trades at $1,657.56, with a 2.78% fall in the last 24 hours. Notably, the network’s Merge is 19 days and 15 hours away.
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