The popular trader warned investors of the possible “pump and dump” with the Ethereum merge.
With the upcoming Merge upgrade, the Ethereum network will transition to proof-of-stake. After this transition, investors expect a significant increase in Ethereum value. Although there is great excitement in Ethereum due to the upgrade, the possibility of new Ethereum tokens to be included in the ecosystem also brings some concerns.
Popular Trader Warns Investors
Commenting on TradingView with the username Tradersweekly, the popular trader discussed the potential problems Ethereum may experience.
The trader stated that new tokens may take place in the market together with Merge. The trader, who thinks that Ethereum will also rise, predicts that this will be a temporary scenario.
“We think there may be an increase in Ethereum value (before the merge). However, we expect this leap to be temporary and the newly created tokens to be released after Merge.”
Correction Possible
The popular trader stated that the “pump and dump” situation is also supported by technical indicators pointing to very low liquidity in Ethereum. The trader predicts a drop around $900 to $1000.
Another crypto trader, Mihai_Iacob, noted that the asset has outperformed Bitcoin in the past two months.
“From a technical point of view, extremely strong support between $1300-1400 and selling pressure from Bitcoin will most likely cause Ethereum to rise to $2500.”
