Will The Ethereum Merge Bring Back The Bulls — Or Is It A Trap?

Ethereum ETH/USD has seen a tremendous upswing in price action over the last week.

Ethereum has risen almost 50% and is now trading at $1,500.39. It has majorly outperformed Bitcoin BTC/USD, which rose from $19,758 to $22,690 during the same time frame, amounting to 13%.

Ethereum’s recent price action could be attributed to the merge coming later this year.

The network’s transition from proof-of-work to proof-of-stake, set to occur in September, will lower the Ethereum network’s energy consumption by a large extent.

The price momentum building up in anticipation of the merge is rivalled by the overarching macroeconomic fears of an impending recession.

In recent news, Tesla announced that it sold 75% of its Bitcoin holdings, which could reduce the recent uptick in the crypto market. 

Benzinga's Take: The recent price rally could be attributed to the anticipation of the upcoming merge but may turn out to be a bull trap as global economic conditions continue to worsen.