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Here's why the Ethereum Merge will Back Fire.

The past couple of weeks have been some of the most tumultuous in the history of crypto as the broader cryptocurrency and equity markets have plunged into bear market territory.
Although as of recently, we’ve seen a slight temporary bounce in Ethereum amid hype surrounding the merge. You’ve probably already heard, but the Ethereum blockchain currently runs on a proof-of-work model, which involves nodes — computers that are part of a large network — competing with one another to solve complicated math problems. The successful ones are then able to mine the next block of a transaction and create new coins.
The problem with this is it uses lots of computing power, and energy. And without any wide-spread adoption or utility, we are essentially throwing away lots of energy. With the global energy crisis, this will likely result in widespread PoW regulations, but that’s a story for another time…
The upgrade will transition Ethereum to the proof-of-stake model, which is a more energy-efficient and environmentally-friendly system. It entails nodes being selected via an algorithm that has a preference for nodes that hold more of a network’s currency.
Once Ethereum switches, Bitcoin will be the only cryptocurrency in the world stuck on the Proof-of-Work model, which is outdated, and inefficient. Unfortunately for Bitcoin, it will never be able to switch off as miners make most of their income from its environmentally destructive POW model.
While the merge itself is good for Ethereum, it isn’t as “great” as many think. While it fixes the energy usage issues, it still ignores dozens of flaws on the Ethereum blockchain.
Buy the Rumor - Sell the News
While many Ethereum holders are speculating this news will trigger the next historic bull market, I strongly disagree. We’re currently in a market-wide recession, and expected to continue that trend for a minimum of several more months.
My long-term targets for Ethereum are back under $300. Until them, it’s unlikely we see any substantial growth. We also have decent support around there.
Whales Bearish on Ethereum Price Post-Merge
According to on-chain analytics firm Santiment, the Ethereum Top 10 Non-Exchange and Exchange Addresses data reveals the bearish sentiment of the top 10 non-exchange whales.
Ethereum supply held by the top non-exchange whales has decreased, while the supply held by exchange whales has increased in August.
Despite the rising excitement regarding the Ethereum Merge on September 15, top whales have reduced their holdings. The top 10 non-exchange addresses have sold nearly 3 million ETH worth almost $5 billion since May 10. Meanwhile, the top 10 exchange addresses have added 4 million ETH worth almost $6.52 billion since May 10.
The merge is nothing more than an exit-liquidity event for whales. It will have zero effect on fixing the insanely high gas fees, as admitted by the Ethereum foundation. While retail gambles in because of false hopes, smart whales are jumping ship before the eventual capitulation even further.
Bitmex CEO Predicts $5000+
In a recent blog post, BitMEX co-founder Arthur Hayes predicted that this phenomenon will help “drive the price of Ether up exponentially,” potentially to $5000 by March of 2023.
When I read this, It made me even more bearish on Ethereum. It shows how early we are into the bear market, as people are still pushing out wild and unrealistic price expectations.
The chances Ethereum rises this much from a tiny switch to Proof-of-Stake is just wishful thinking at its finest. Those who can profit the most of this must be realistic, and understand the overall bearish market trend, which will ultimately take away any long term hype from this event.
Please share your thoughts on this matter, even if you disagree with my views, I am eager to hear everyone’s opinions! :)
Follow my new Twitter account!
Hey Whales, You may have already heard, but I’ve started a new Twitter account following my censorship and suspension on @CryptoWhale.
Thank you all for your unwavering support. I will be posting lots of more articles this week for you all, stay tuned!
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