Risk-reset in equity markets probably helped battered crypto bulls cheer Ethereum's impending technological upgrade, the Merge. godbole17 reports
), the native token of Ethereum's blockchain, rallied sharply in the four weeks to mid-August., doubling to $2,000.the price rally to the long-awaited Ethereum Merge – the technological upgrade that will transform the smart contract platform to a proof-of-stake network. The switch is expected to cause a drastic reduction in ETH supply, and thus hoped to bring a store of value appeal to the cryptocurrency.
However, a closer look at the price action over the past two months suggests the risk reset in traditional equity markets probably paved the way for ETH's bull move. Looking ahead, that sensitively to stock markets warrants caution on the part of ether bulls expecting a more significant rally after the Merge, which is nowOver the past two months, ETH has moved in lockstep with Wall Street's benchmark stock index, the S&P 500.
Possibly behind the equity rally in July and the first half of August was the hope that inflation has peaked and the Federal Reserve would resort to rate cuts next year. That dovish Fed narrative, however, fizzled out in the second half last month, bringing renewed weakness in stocks and cryptocurrencies, with ether tumbling more than 20% from a peak hit on Aug. 14.
, the real Merge rally in ether has yet to happen and will likely begin only after the upgrade takes out a significant chunk of selling pressure from the market.
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