The much-awaited wait for the Ethereum merge is set to end on 15th September. This will be a significant and closely watched event for the crypto world as the world’s second-largest cryptocurrency after Bitcoin, Ethereum, will transition from Proof-of-Work to a Proof-of-Stake model.
The proof of stake mechanism uses far less energy and will make Ethereum 99% more energy efficient.
In this article, we will discuss ways to trade Ethereum merge. We have listed popular theories surrounding Ethereum price that may guide you to take your next decision.
Hedging
At a time when there is greater market volatility and the crypto market saw a terrible performance of Terra (LUNA) and other coins, it is natural for someone to feel nervous. In such circumstances, Hedging can be an option for investors who are only half sure about the Merge. For those who are long Ether, since the recent $880 “bottom”, holding a short position in futures and options contracts can protect them from losses if ETH corrects sharply and manages to get the PoW hardfork tokens.
“Buy on rumors, sell on news”
There is a belief that when events unfold as per expectations, the market does not behave as what was anticipated. An old proverb, “Buy on rumours, sell on news,” comes into play in such circumstances.
