Major cryptocurrencies continue to drop for the second day straight on with the Fed policy meeting failed to bring clarity on the US central bank’s rate hike stance.
Bitcoin price was trading around $23,428, while Ethereum price was trading slightly above $1800. Similarly, major altcoins are trading near support areas.
Ethereum is currently stuck near $1,850 with bearish sentiments. On the upside, the ETH price is facing resistance near the $1,880 level. On a successful breakout, the ETH price will further head towards the $1,920 level, if the bulls remain intact the second largest crypto can surge above $2,000.
Conversely, if the bulls fail to hold above the $1820 support, ETH price could decline below the $1800 level and possibly drop towards the $1750 level.
How Will Ethereum Respond To the Merge Event?
According to Bitmex CEO Arthur Hayes, Ethereum Price might enter a correction phase in the coming weeks. As per his recent blog post, the ETH price might see a major decline if The Merge is unsuccessful.
Arthur explains two possible cases for the price of Ethereum.
First, if the merge is successful There is a positive reactive relationship between the price and the amount of currency deflation. Therefore, traders will buy ETH today knowing that the higher the price, the more the network will be used and the more deflationary it is, the higher the price, which will lead to more network usage, and so on and so on. some . This is a virtuous cycle for the bulls. Sealing occurs when all of humanity has an Ethereum wallet address.
Conversely, if the merger is unsuccessful, there will be a negatively reflexive relationship between the price and the amount of currency deflation. Or, to put it another way, there will be a positively reflexive relationship between the price and the amount of currency inflation. Therefore, in this scenario, I believe traders will either go short or choose not to own ETH.
Overall, Arthur believes that ETH will not drop below the $800 to $1,000 price during the TeraUSD/Three Arrows crypto credit bearish.
