Veteran trader Avi Felman thinks the excitement over Ethereum Merge could be bad for the markets.
Felman believes the markets are currently in a “lucrative” state, which does not end well.
Experienced Trader Worried
Felman expressed his concerns about the ongoing market excitement in a statement on Twitter. The trader attributes this to the high expectations of investors before the Ethereum Merge.
This observation also cited the poor performance of Bitcoin and altcoins as an argument. Compared to Ethereum’s recent attack, the leading cryptocurrency is underperforming.
This should be fairly obvious, but just in case it isn't: The entire market is based off the bid for Ethereum right now. The fact that BTC is still struggling with 24k and many alts haven't moved in the last week are indicative of this. This can be lucrative but not always good
— Avi (@AviFelman) August 12, 2022
Although this situation makes investors profit, it does not mean that it is always positive for the medium-term performance of the crypto markets.
At the time of writing, Ethereum is trading at $1,981 according to CoinMarketCap data.
Ethereum Merge Will Be Earlier Than Expected
Bitcoin failed to hit the $25.00 level and is consolidating 2.9% higher at $24,800. The net capitalization of the cryptocurrency market is at $1.25.
Ethereum developers have announced that the first step of the Merge upgrade will take place on September 15.
The Ethereum upgrade will enable the network to transition from a proof-of-work algorithm to a proof-of-stake algorithm. Thus, the network will become environmentally friendly by consuming less energy. Many analysts consider the Ethereum upgrade to be the most important cryptocurrency event in 2022.
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