Data suggests professional traders have some skepticism about the robustness of the rally for Ethereum after the price of ETH declined below the $2,000 resistance level.
Although Ethereum (ETH) broke the $2,000 barrier on August 14, the bull market appears to have won thanks to the strong 82.8% gain because the ascending wedge formation began on July 13. Unquestionably, the network anticipates the Merge transactions to a proof-of-stake (PoS) agreement network on September 16. With that, the “ultrasound money” dream moves closer to reality.
Some detractors note that the move away from proof-of-work (PoW) mining has been put off for years and that the Merge does not deal with the scalability problem. Sharding, often known as the network’s transition to parallel processing, is anticipated to occur in late 2023 or early 2024.
According to the Ether bulls, the EIP-1559 burn mechanism, launched in August 2021, was crucial in making ETH scarce.
Traders Flinching As Ethereum Prices Gone Down:
Despite removing the need to support the pricy, energy-intensive mining activities, the widely anticipated switch to the Ethereum Beacon Chain crypto coins was greatly criticized. The inability of ETH stakers to take their coins, which results in an unsustainable transient offer-side decline, is highlighted below by DrBitcoinMD.
Undoubtedly, a supply shock resulted from the reduced number of coins for sale, especially in light of Ether’s recent 82.8% surge. Though no guarantees were offered for immediate transfers after the Merge, these investors were aware of the dangers associated with Eth2 staking.
Ether’s derivatives markets data can help investors identify where whales and trading desks are. When traders overspend for upward or downside protection, the 25% delta skew is a warning.
The skew indicator would increase to above 12% if those market players were concerned about an Ether price fall. Generalized excitement, however, exhibits a negative 12% skew.