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Ethereum price rises to $1,900 – upcoming merge is clearly noticeable

 


The impact of the upcoming Ethereum merge is clearly being felt in the crypto market. Not only has this impacted the price of ETH, but the price of most other digital assets as well. This was followed by a surge towards monthly highs. However, the impact is not limited to the spot market. Data shows that this is also being felt in the futures markets, where prices are falling towards all-time lows.


Ethereum futures are falling relative to the spot market

Ethereum futures have historically traded at a slight premium to spot prices. This has not been a problem so far as it is also the case with other digital assets like Bitcoin. However, the merge changed things in ways that weren't expected.


Last week's numbers show that the premium on Ethereum futures relative to spot prices is increasing. This was first noticed on cryptocurrency exchange Binance , where futures were trading at a 5% discount on Monday. This has also spread to other crypto exchanges like FTX, which have also seen a big discount.


It's not the first time futures have traded at a discount to the spot, but it's the lowest level it's ever been. The CME is not left out either, as ether futures are trading at a discount to spot prices for the first time since their inception in February.


reason for strong differences

As previously mentioned, the growing discount between futures and spot prices is a consequence of the merger. More specifically, it is a consequence of the various trading strategies employed by investors to maximize their profits.


There has also been some resistance to moving Ethereum from a proof-of-work mechanism to a proof-of-stake system. As a result, there have been attempts to hard fork the chain and keep the current PoW mechanism. The hard fork is already being endorsed by notable figures such as Justin Sun and is expected to be a success.


It's the same as the Bitcoin Cash hard fork in 2017. Before the fork, BTC futures were trading at a 9% discount to spot prices on Okcoin. As ETH appears to be reflecting the same trend, expect futures prices to close the gap once the hard fork is implemented.


Ethereum price rises over 12 percent

The Ethereum price has risen sharply in the last 24 hours. The cryptocurrency is currently trading at $1,886, up over 12 percent in the last 24 hours. It seems that ETH could target the $1,900 level later today.


The mood in the crypto community regarding the Ethereum Merge is positive, which is also reflected in the performance of ETH. In the past seven days, Ethereum is up over 16 percent and if this trend continues, the cryptocurrency could soon target $2,000.

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