Developers of the Ethereum network said that the forthcoming Merge would take place in September, which caused traders to go long on ETH.
The bulls had the upper hand during July’s $1.26 billion monthly contract expiry thanks to Ether’s (ETH) 53 percent gain between July 13 and July 18. The change was made as Ethereum developers established a possible date for the “Merge,” ending the time-consuming proof-of-work (PoW) mining process.
Some observers claim that Ether could ultimately acquire “ultra-sound money” status by eliminating the additional ETH issuance used to pay for the energy costs necessary for traditional mining consensus.
Ethereum Price Might Go Higher:
It’s unclear whether smart monetary policy centers around consistently changing the rules for producing and burning coins. Still, there’s no denying that the July 14 video chat between Ethereum developers and investors helped to significantly increase the price of ETH.
On July 26, a sudden, sharp increase in the number of active addresses on the Ethereum network sparked numerous rumors about whether Ether was aiming for its previous record high. Santiment Analytics claimed that 1.06 million addresses were active 24 hours a day, surpassing the previous record of 718,000 that had been set in 2018. There have been theories that “Binance is undertaking a maintenance sweep,” for example, but nothing has been proven.
According to statistics from Coinglass, leveraged bearish traders (shorts) were the primary losers of Ether’s stunning 20 percent comeback on July 27, as they had to deal with $335 million in total liquidations at derivatives exchanges.
Since bears were excessively optimistic, the actual amount will be lower than the $1.27 billion short interests for Ethereum’s July monthly options expiry. These traders became overconfident when ETH fell below $1,300 on June 13 and 16.
Only 17 percent of put (sell) options for July 29 had been placed above a certain price level. Therefore the push above $1,500 on July 27 startled the bears.
