The Ethereum (ETH) Merge is a month away, and the entire crypto community awaits the revolutionary event. In anticipation, most investors have taken to stacking up ETH tokens, awaiting the positive price action The Merge will influence. However, an analyst has highlighted why purchasing ETH at this point in time is a bad idea.
Ran NeuNer believes the upside of ETH is almost priced in
Ran NeuNer, analyst and anchor of crypto YouTube channel Crypto Banter, taking to YouTube, analyzed the current state of the crypto markets. NeuNer highlighted a few recent trends, including the Ethereum Merge, the hype around it, and the growing interest in ETH.
NeuNer admitted that the Ethereum ecosystem is “amazing,” and its transition to PoS is a welcome development. However, he noted that holding ETH within this period could send investors underwater.
NeuNer mentioned that it is true that ETH’s price is going to “run” due to The Merge.
But at some point, you get to a point where the upside and the downside are asymmetrical,
He pointed out the pattern of rallies ending when the community least expects them to and Ethereum is already staging a rally. According to NeuNer, the rally could last another week or two before eventually losing steam.
Analyst Galois Capital shares the same sentiments as NeuNer
NeuNer believes that money is going to start flowing out of Ethereum once the rally loses its momentum. He says this is likely to occur because at such a point, the asset’s upside would have already priced in. Additionally, he further noted that investors could develop anxiety due to concerns of The Merge not working as expected.
He said this is the period when everyone is talking about buying ETH due to Ethereum Merge. According to him, there will come a time when the community will talk about selling, and this could build sell pressure. To buttress his point, NeuNer cited fellow analyst Galois Capital who shares the same sentiment.
Taking to Twitter, Galois Capital noted that he would be shorting ETH while he longs BTC in the same proportion. Galois Capital is one of the market watchers who predicted Terra’s downfall and ETH futures backwardation.
At the time of writing, ETH has shed 4% of its value in the past 24 hours to trade at $1,899. Despite this 4% drop, the asset has gained by 6.36% in the past week. Nonetheless, the weekend rally appears to be losing steam. Now, whether NeuNer is right or not remains to be seen. The community still anticipates The Merge, and market watchers are waiting to see how it will affect ETH’s price.
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.