The value of major cryptocurrencies has continued to decline for the second day in a row on the back of the failure of the Fed policy meeting to provide clarity on the US central bank's attitude regarding rate hikes.
The price of one bitcoin was trading at approximately $23,428, while the price of one Ethereum was trading just barely above $1800. The same can be said for major altcoins, which are trading close to support zones.
At this time, gloomy feelings prevail over the Ethereum price, which is consolidating near $1,850. On the positive side, the price of ETH is running into opposition close to the $1,880 mark. If the breakthrough is successful, the price of Ethereum will continue to move toward the $1,920 mark; but, if the bulls continue to hold strong, the price of the second largest cryptocurrency may leap past $2,000.
On the other hand, if the bulls are unable to maintain their position above the support level of $1820, the price of ETH may fall below $1800 and even approach the level of $1750.
How Will Ethereum Respond To the Merge Event?
In the upcoming weeks, the Ethereum Price may be entering a phase of correction, as stated by the Chief Executive Officer of Bitmex, Arthur Hayes. According to his most recent post on his blog, the price of ETH could experience a significant drop in the event that The Merge is unsuccessful.
In this lesson, Arthur breaks into two possible outcomes for the price of Ethereum.
To begin, if the merger is successful, there will be a positive reflexive link between the price and the quantity of currency deflation. This relationship will exist only if there is a productive currency deflation. Traders will purchase ETH today because they are aware that the price will continue to rise as more people use the network, which in turn will cause the network to be much more deflationary, which will drive the price even higher, which will cause even more people to use the network, and so on and so forth. The bull population thrives within this virtuous circle. The ceiling will be reached when every single person on the planet has an Ethereum wallet address.
On the other hand, there will be a negatively reflexive relationship between the price and the degree of currency deflation if the merger is not effective. To put it another way, there is going to be a positively reflexive relationship between the price and the amount of currency inflation that occurs. In light of this, I believe that traders will either engage in short selling or make the decision not to own any ETH.
In general, Arthur is of the opinion that the price of ETH won't drop any lower than the range of $800 to $1,000 that it experienced during the TerraUSD and Three Arrows crypto credit crises.