Bitcoin & Ethereum prices have been trading within a very narrow range ever since the fresh inflation rates, dragged the assets lower. With the plunge, the market sentiments bewildered and the 24-hour trading volume remained squeezed for the second consecutive day. While all the expectations lie around the upcoming Ethereum Merger, the markets may manifest diverse actions.
BTC and ETH prices are currently stuck around $20,000 and $1600 respectively for quite some time now. Therefore, the upcoming event is considered to propel the price above $23,000 and $1800 respectively. Although these spikes are supposed to happen soon after the merger, a notable drop could follow the surge, according to Capo, a popular analyst.
Now when the moment is fast approaching, the funding rate on ETH flips to positive after being highly negative for the past couple of days. Hence, the possibility of the bears paying the bulls intensifies. This may be the time when the shorts are thrashed for some time and induce immense confidence within the longs.
However, history is all set to repeat and the market is expected to witness a significant downtrend followed by a short-term bounce. Conversely, if BTC and ETH price crosses the crucial $22,500 and $1750 levels and remains firmly above these levels by the end of the day, the bulls could invalidate the bearish trend.
Rounding off, the Ethereum Merge is an inch away and the markets still remain more or less immobile. Once the Merger is accomplished, one can expect huge volatility in Bitcoin (BTC) & Ethereum (ETH) prices, regardless of the direction of the rally.
