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Is it foolish to expect a massive Ethereum price surge pre- and post-Merge?

Published 08/11/2022, 03:55 PM
Updated 08/11/2022, 05:40 PM
Is it foolish to expect a massive Ethereum price surge pre- and post-Merge?

Ether’s (ETH) impressive 85% gain in the past 30 days has surprised even the most bullish investors, and it makes the $800 range seen in mid-July seem like ages ago. Bulls now hope to turn $1,900 to support, but derivatives metrics tell a completely different story, and the data suggests that professional traders remain highly skeptical.

Ether 1-day price index, USD. Source: TradingView

It’s important to remember that the leading cryptocurrency, Bitcoin (BTC), gained 28% in the same period. Thus, there should be no doubt that the Ether bull run was driven by the Merge expectation, a transition to a proof-of-stake (PoS) consensus network.

Ether 3-month futures annualized premium. Source: Laevitas
Ether 30-day options 25% delta skew: Source: Laevitas

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