Merge has become one of the most talked about events of recent times. This event, which marks the transition of the Ethereum network from proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS), is expected to affect some altcoins and Bitcoin as well. In this article, we will share analyst Akash Girimath’s comments on how Optimism (OP), Lido DAO (LDO) and Bitcoin (BTC) will move with the Merge effect. Here are the details…
What are the expectations of Ethereum, Bitcoin in the framework of Merge?
Analyst Akash Girimath begins with the Ethereum technical analysis, which is the main topic of Merge, before cryptocurrencies that are expected to experience price changes in connection with Merge. As we have also reported as Kriptokoin.com, the date of September 15, 2022 is pointed out for the merge. The value of ETH, which has changed hands over $ 2,000 in the past weeks, has dropped below $ 1,500 these days. The analyst also pointed to this decrease and talked about the loss of 30 percent. According to the analyst, during this process, the support level at $ 1,730 turned into a resistance level.
Mentioning that the price is currently stabilizing, the analyst pointed out that the next price action will be affected by Bitcoin. He said that although we see small upward movements in the short term, he does not expect very encouraging movements in the long term. This week, he expects it to move around the $1,570 levels. The analyst, who thinks that the Merge rally is over in general, thinks that we will see the highest level of $ 1,730 in the short term. In the long term, the low marks $1,280. He draws attention to the possibility of seeing $ 500-600 as the macro low level.
As it is known, the Bitcoin price took a big hit after the Jerome Powell speech on Friday. Although it has rebounded slightly at the time of writing, the analyst is not seeing bullishness for BTC anytime soon. He thinks the price will not go beyond the $20,700 levels in the short term. Stating that BTC has been in decline since April 2022, when $ 40,000 was seen, the analyst expected a decline to around $ 19-20 thousand.
What are the levels to watch out for for Lido and Optimism?
He says he’s seeing a return for Optimisim (OP). While noting that the price is starting to rise, the analyst considers the $1.35 to $1.43 range to be the “take-profit zone”. He cites the expectation of $1.17-1.22 as the most likely level. However, he believes that if it moves on the downside, the area around $0.75-0.77 is a “stop-loss” area. Overall, Optimism is a bullish coin. For this reason, he recommends investors to consider this coin.
The analyst mentions that it “looks good” as soon as it moves to the Lido chart. He conveys his positive sentiments by saying that the price is moving around the ascending wedge pattern. He states that the target is $1.76, then goes up to $1.79. It points to $2.12 for the next resistance/expectation level. However, in case the price moves on the downside, it draws attention to around $1.40.
Result: Merge rally is over!
In general, the analyst talks about the end of the Merge rally. Girimath adds that he expects a decline in the market for a long time. The analyst, who predicts that we may see a selling wave in early September with the effect of Merge, therefore believes that the volatility will be quite high. He says that once buyers and sellers have calmed down on both sides, prices will drop again.
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