Ethereum continues to rally in anticipation of the Merge.
With roughly one month
to go before the Merge
, ETH continues its rally.
The "Merge trade
" seems well and truly alive, as ETH has almost doubled from its bottom around $1,000. It closed a sixth straight week in the green and is up more than 16% over the last seven days at the time of writing.
The price of ETH in BTC continues to rally as well, with the key resistance of 0.075 BTC broken again. Although ETH briefly dipped on Sunday evening, early trading hours in Asia saw the dip bought.
Crypto Twitter traders do not seem to agree on a clear price target for this rally, and some see it rallying as high as $2,400 before the network's switch to proof-of-stake.
The "Merge trade" made the rounds on crypto social media a few weeks ago, as traders anticipated buying pressure on ETH, which was thought to be fundamentally undervalued with the upcoming changes. For instance, new coin issuance will be drastically reduced and ETH could likely become deflationary. This has spurred prominent traders like Arthur Hayes
to "max bid" ETH in anticipation of rallying prices.
Still, the overall consensus remains that this is still a bear market rally and short-term gains will likely find a top at some point in the next few weeks.
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