Famous “pump and dump” trader tips on the horizon for Ethereum

The upcoming Ethereum (ETH) merger upgrade is expected to lead to a surge in the value of the cryptocurrency as it will improve the blockchain after the Proof-of-Stake (PoS) exchange. Although bullish sentiment for the upgrade is high, a section of the cryptocurrency market believes there is cause for concern, especially with the potential for new Ethereum tokens to be introduced into the ecosystem.

In this line, a famous cryptocurrency trader is posting under his username Traders Weekly TradingView suggested that one of the direct impacts of the merger was to trigger a pump-and-dump scenario in Ethereum, particularly with the distribution of tokens from the legacy Proof of Work (PoW) protocol.

The trader notes that the unloading will occur through the entry of the newly created tokens into the market along with the merger. The trader also acknowledged that the price of Ethereum will rise, but the scenario is temporary.

“Given these tokens ‘out of thin air’, we believe that there may be an initial increase in the price of Ethereum (especially prior to the merger). However, we expect the potential bounce back to be temporary and the newly created tokens will be dumped into the market along with the Ethereum (after the merger), the trader said.

Ethereum Likely to Correct to $900

At the same time, the trader noted that the pump and dump situation is supported by technical indicators that Ethereum is very low in liquidity. In this case, the expert predicted a downside around $1,000 and $900.

Ethereum chart. Source: TradingView

Elsewhere, another crypto trader has been identified as Mihai_yakob Ethereum is bullish, noting that the asset has outperformed Bitcoin (BTC) over the past two months.

“Technically speaking, the $1,300-1,400 area is a very strong support at the moment, and the increased selling pressure from BTC is very likely to push ETH to $2,500,” he said.

The bullish sentiment regarding the upgrade mainly stems from the fact that Ethereum will be less inflated after the event and will build on its position as a store of value.

Cautious approach to integration

Notably, many market experts were wary about the overall impact of the upgrade. As reported by Coinphony, Anthony 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, the initial success of Merge will determine how the cryptocurrency will perform at number two by market capitalization in the future.

Despite the bear market, Ethereum has made gains and is trading at $1,700, with over 5% growth in the past 24 hours.

warning: The content of this website should not be considered as investment advice. Investments are speculative. When you invest, your capital is at risk.

The Post Popular Trader Hints of a “Pump & Dump” on the horizon for Ethereum first appeared on Coinphony.

Leave a Comment