The big day is approaching for the leading altcoin Ethereum (ETH). The team plans to perform Ethereum Merge on the 14th of this month. A popular crypto analyst hints at the ‘Pump & Dump’ on the horizon for Ethereum.
A ‘pump and dump’ is on the horizon for the leading altcoin
cryptocoin.comAs you follow, the Ethereum (ETH) Merge upgrade is approaching. Experts think it will improve Blockchain after the Proof-of-Stake (PoS) transition. That’s why analysts see it as likely to trigger a potential rally in the coin’s value. The bullish sentiments are high for Merge. However, he has some concerns about the potential entry of a segment of the crypto market, specifically new Ethereum tokens into the ecosystem.
In this line, a popular crypto analyst posting under the Tradersweekly username shares his views. According to the analyst, one of the direct effects of Merge will be to trigger a ‘pump and dump’ scenario on Ethereum, especially with the distribution of tokens from the legacy Proof-of-Work (PoW) protocol. The analyst says that there will be a dump from the newly created tokens that will be released with Merge. Tradersweekly also acknowledges that the Ethereum price will rise. However, he states that this scenario is temporary. In this context, the analyst notes:
Due to these airdrop tokens, we think there will probably be an initial increase in the price of Ethereum (especially before Merge). However, we think a potential jump will be temporary. We also expect the newly created tokens to be dumped on the market after the Merge, along with Ethereum.
Ethereum likely to correct to $900
At the same time, the analyst notes that the ‘pump and dump’ situation is supported by technical indicators pointing to very low liquidity in Ethereum. In this case, the analyte predicts a drop between around $1,000 and $900.
Ethereum chart / Source: TradingView
Elsewhere, another crypto analyst, nicknamed Mihai_Iacob, notes that the asset has looked better than Bitcoin (BTC) in the past two months. Therefore, he says it is bullish on Ethereum. The analyst makes the following statement:
Technically speaking, the $1,300-1400 region is currently an extremely strong support. Also, selling pressure from BTC will most likely lead ETH to surge towards $2,500.
The bullish sentiment about the upgrade is mainly based on the fact that Ethereum will be less inflationary after the event. To that extent, it stems from the fact that it will enhance its status as a store of value.
Cautious approach to Merge
In particular, several market experts remained cautious about the overall impact of the upgrade. Antoni Trenchev, co-founder of crypto lending platform Nexo, suggested that there is no guarantee that the Merge upgrade will inspire a rally in Ethereum.
According to Trenchev, Merge’s initial success will determine how the leading altcoin will perform in the future. Meanwhile, despite the bear market, Ethereum has recorded over 5% growth in the last 24 hours. The leading altcoin was trading at $1,720 at press time.
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