Urgent: Could Ethereum Plunge? Market is betting on cryptocurrency crash after The Merge

The Merge, the most important update in cryptocurrency history, was successful; even so, the market is betting on the fall of Ethereum; understand why. (Image: Unsplash/Bastian Riccardi)

Last Thursday (15th), the most important update in recent years for the cryptocurrencies: The Merge, by Ethereum. So far, the update appears to have been implemented successfully.

Many analysts are quite excited about the future of cryptocurrency, estimating increases of up to 400% for the cryptocurrency. ether, the network’s native cryptocurrency. That is, enough multiplication to quintuple your money.

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Recently, analyst Vinícius Bazan, one of the leading crypto experts in the country, recently stated in a podcast:

“I honestly think it’s conservative to think of ether at $10,000. Considering it is currently at $1,600 at this point, it seems like a no-brainer to invest in this business (an obvious decision).”

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Of course, the term “conservative” here is inserted in the context of the crypto market. It’s not something conservative like a fixed income. You need to be aware of this. It is something with considerable risk – but also with a very interesting potential return.

Given this, what explains the recent drops in Ethereum? In the last seven days, the cryptocurrency has accumulated a drop of 11%.

And more: according to metrics on-chain – metrics that show activity within the cryptocurrency ecosystem –, much of the market is betting on the cryptocurrency’s fall.

What’s happening? If the upgrade is so promising and will improve the Ethereum ecosystem, why this downward trend?

Let’s recall what happened at The Merge and try to understand why the market is positioned to anticipate a drop.

Learn why The Merge brings so much potential to Ethereum

Basically, this upgrade is so powerful because, among other things, it would make Ethereum deflationary.

This is one of the reasons, for example, that led Bitcoin to appreciate so much in recent years. Every four years, Bitcoin goes through a process called Halving, in which the production of new bitcoins is halved.

This is quite important to make the cryptocurrency economy healthy by controlling inflation. As a consequence of this process, the price tends to rise, as the supply of new bitcoins decreases, while the demand increases.

And that’s exactly what happened in the three Bitcoin halvings.

Image showing valuations at each Bitcoin halving
(Source: Tradingview)

And it’s exactly the same process that’s happening now with Ethereum — but on a much larger scale.

Prior to The Merge, 13,000 ethers (Ethereum’s native cryptocurrency) were issued every day.

After the update, the goal is for that number to drop to 1,300. That is, an almost 10-fold reduction in the number of new coins entering the market.

This would be the same as doing the equivalent of 3 Bitcoin halvings all at once with just one update.

If we compare with the last 3 Bitcoin halvings, we are talking about a valuation of just over 7,000%.

But if the potential is so brutal, why is cryptocurrency dropping in recent days?

And more importantly: why is the market betting on the fall?

Market Positioned to Anticipate Ethereum Drops; see chart

Take a look at the graphic below:

Chart showing strong pressure on short Ethereum contracts
(Source: Glassnode)

This chart shows the relationship between Ethereum futures contracts, both betting on the asset’s fall and rise.

Basically, the greener the chart, the more the market is betting bullish. And the more red, the more the market bets on the fall.

As you can see, the latest data on the chart is redder than it has been since mid-2021.

That is, the market is betting heavily on the fall of Ethereum, even with the full potential of the update at stake.

What’s going on here? Apparently, something doesn’t make sense in this market decision. But on the other hand, if thousands or even millions of dollars are being put into this bet, it’s because the market knows something that you probably don’t.

If this market decision doesn’t make sense to you, then I suggest you take a few minutes to understand this better – especially if you have some money in Ethereum or if you plan on investing in the asset.

Crypto Radar: Everything you need to know about the market, 100% free

Luckily, analyst Vinícius Bazan prepared a complete video with everything you need to know about the current post-Merge Ethereum moment.

He explains why the market is positioned to take advantage of the crypto asset’s fall and also brings several other important information, both about Ethereum and cryptocurrencies in general.

Valuable information that, if put to good use, can turn into money in your pocket. That simple.

And the best part: access to this video is 100% free. It is part of an initiative called Crypto Radar.

Crypto Radar is a weekly cryptocurrency market update, in video format.

It’s safe to say that this weekly review has everything you need to know to make the best decisions and have the highest chances of success. make money with crypto.

And now, as a courtesy of Empiricus Investimentos, you will be able to access this material free.

The purpose of this bold action is to spread quality knowledge about Bitcoin, Ethereum and other cryptocurrencies.

It is to escape the shallow analyzes of youtubers and influencers and approach cryptocurrencies with the seriousness and depth that are due.

So the choice is yours. Great financial gains can be unlocked when you have the knowledge to invest wisely.

And that knowledge is available in the video below. Just click on the link and access.

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