Why Ethereum Will Drop Right After The Merge

The Ethereum Merge will go live in just a little over a day. According to the price prediction of many experts, the merge will be a massively bullish event for Ethereum and crypto. However, as more traders short Ether derivatives, experts fear that the merge may be a “Buy The Rumor, Sell The News” event.

As the Merge draws closer, Ethereum prices are dropping significantly. Despite not plummeting at the same rate as Bitcoin, Ethereum has decreased by 7% in the last 24 hours.

Ethereum Merge Price Prediction

Buy the rumor, sell the news refers to when traders position to gain from the hype around an event and then sell when the event takes place. This usually happens when the hype around an event can exceed the actual outcome. 

Lark Davis, a major crypto influencer and trader, explains why the Ethereum merge can fall into this category. He believes that the merge is a “fundamentally bullish” event. He points to the massive reduction in energy consumption and emissions and the deflationary nature of the merge to explain why Ethereum will eventually skyrocket. 

However, according to Davis, most of these accomplishments will take time to come into effect. Therefore, sell the news effect may be into play. Quinten Francois, a popular crypto influencer and trader, reveals that after the merge Ethereum will drop in contrast to Bitcoin. However, a strong recovery can be expected after that.

Why Ethereum Merge Outcomes Will Take Time

Despite having extreme potential in the long run, the merge will take time to achieve its goals. Moreover, the merge fails to address some of the key issues with Ethereum. For example, it does not address the long waiting times and high gas fees. 

Vitalik Buterin, the founder of Ethereum, has laid down a long four-phased plan to address those issues. 

More importantly, if Ethereum miners try to hard fork Ethereum, it can have a catastrophic effect on the entire ecosystem

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.