Economist and crypto trader Alex Kruger EthereumHe thinks that ‘The Merge’ will be able to rally a little before the update “The Merge” is expected to be completed on September 13.
Sharing his views on his Twitter account Alex Krugerthinks that the US Consumer Price Index (CPI) data, which is expected to be released on the same day as The Merge update, may increase risky assets, albeit short-term.
As a result, Kruger thinks Ethereum could rise as much as 28% from current levels.
“Ethereum Merge If you’re directional ETH trading for , he’s probably looking for a $1,700 break to go long into the event with stops just above August lows and push the price into the $1,800-$2,100 range. We expect CPI to give one-week support to risk assets next week.”
Ethereum was trading at $1,635 at the time of writing.
Arguing that a stock market rally is necessary to trigger a bull market in cryptocurrencies, Kruger also suggested that Ethereum could continue to outperform Bitcoin (BTC) after the transition to a proof-of-stake consensus mechanism.
“Basically, The Merge will increase the attractiveness of Ethereum through lower energy consumption and, more importantly, greatly improved tokenomics. Continued (yet declining) performance against BTC will make sense over a broader timeframe.
This will likely not be enough to start a bull market on its own. It looks like we need a bull market in stocks for that.”
However, the economist also warned that the days following the update could be “messy” as Ethereum transactions are closed.
“Merge easing can be very messy as spot longs and futures shorts close. If you’re playing for a long time, the bare futures should have an extra hit (they’ll come, not the constant ones).
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.