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Trading the merge is top of mind as PoS event nears and Ethereum PoW hard fork looms

Traders are strategizing on how to trade the Merge as ETH options soar to $8.1 billion, crypto exchanges contemplate shutting down ETH transactions during the merge, and the crypto community weighs the possible outcomes of the post-Merge market.

At a glance...




  • Anticipation brewing over upcoming ETH merge
  • Peru and Argentina deepen their ties to crypto
  • Canada to limit crypto buys with certain exceptions
  • Head of Huobi to sell their 60% stake


Top Market Trends:

  • The crypto community launched a social media and legal push for normalizing financial privacy as a basic right, following the news of Tornado Cash sanctions.
  • Motiv Inc. announced it was launching 16 circular Bitcoin-based economies in Peru to increase financial inclusion through educational programs and micro-economy tools.
  • Buenos Aires, Argentina’s capital with 15 million people, plans to run Ethereum nodes within a year to help officials explore the technology and formulate regulations.
  • Canada solidified the place of Bitcoin and Ethereum in financial markets as their new crypto limits policy restricts most provinces to $30k per year for all crypto buys - except BTC, ETH, BCH, and LTC, which are unlimited.

Movers and Shakers

Top 7-day Gainers:

  1. CHZ +30.3%
  2. LEO +9.9%
  3. CEL +7.8%
  4. SHIB +4.9%
  5. 10SET +1.4%

Top 7-day Losers:

  1. BIT -32.9%
  2. SNX -26.0%
  3. GRT -25.2%
  4. RUNE -24.6%
  5. NEAR -23.4%

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Technical Summary

Bitcoin Pulse
Bitcoin (BTC) trended downward the last several days but news of the US Fed continuing its monetary tightening may have influenced this week’s demise. Risk assets are generally not as popular when economies slow down. With privacy in laser focus, an announcement was made this week about a prototype for a secure, open source chip for Bitcoin hardware, which is being developed by Tropic Square.

  • Bitcoin began a retracement of its recent rally from the $20k support area.
  • BTC’s Relative Strength Index (RSI) broke from an ascending support line and is trending down.
  • Some analysts suggest that if BTC doesn’t reclaim the $24k support level, a steeper dip to $21.5k could ensue.

2-hour Bitcoin TA
There seems to be both bad and good news for Bitcoin's short-term price:

BTC_USDT_Short_TermBTC Freefall to Continue?

BTC's price appears to be in near free fall as it drops out of many channels and wedges. We ultimately find ourselves returning to a familiar channel setup since June 13th, meaning our free fall has another 1.5k to go.

**1-Day Bitcoin TA **

BTC spent the last few weeks attempting to move the price above the 200-Day Moving Average:

BTC_USDT_Long_TermWill BTC fall below the 200MA?

We were able to confirm the move above it last week, but the future does not look so bright this week. With the dramatic price shift, we could see BTC moving below the 200 MA.

Altcoins on the Move
All eyes are on Ethereum and as the Merge to PoS draws near, uncertainty and anticipation prevail. Altcoin markets were pretty flat over 7 days, but Chiliz (CHZ) had a major breakout, leading crypto gainers with a 36% spike. Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) both made strong gains, the latter rising 7% on the news of their Layer-2 Shibarium.

  • Traders are strategizing the Merge; some by longing ETH, others by shorting or placing both types of orders as a hedge. Others are considering accumulating more ETH now to HODL in case the proposed PoW fork of Ethereum and subsequent new tokens gain acceptance and have liquidity.
  • ETH reached an all-time high for open interest in options trading this week, surpassing Bitcoin for the first time.
  • Huobi’s reserve-backed stablecoin depegged this week, dropping to $0.84.

Altcoin TA
For Ethereum, it's time to think of the next support zone:

ETH_Short_Term_TAETH Entering past support levels

As ETH's price starts entering a free fall, we see possible support levels at approximately 1,660 and 1,575 that have been lines of either past support or resistance.

Newsworthy:

  • Crypto banks: Latin America’s biggest investment bank launched a BTC exchange, Revolut won approval to offer Bitcoin to 17 million Eurozone clients, and the US published policy notes on tiers of regulated crypto banks.
  • Exchange news: Huobi Global head wants to sell his 60% stake for $1 billion with interested buyers including Justin Sun and FTX, and Coinbase said it would pause ETH and ERC-20 token transactions during the Merge.
  • In NFTs: Solana and Phantom partnered to launch Burn NFTs to lessen spam NFTs, Rarible submitted a proposal to the ApeCoin DAO to build an APE-centric NFT marketplace, and Starbucks announced it would introduce NFTs.
  • Crypto Regs: South Korea’s Financial Intelligence Unit identified 16 exchanges, including KuCoin and Poloniex for illegal operations.

Spotlight on: Zcash (ZEC)

Zcash (ZEC) began as a fork of Bitcoin and the original team’s vision was to create a more private crypto that could be widely used for payments. With the recent Tornado Cash sanctions, privacy coins like $ZEC are getting a lot of attention from the crypto community and regulators alike.

Get the full scoop on Zcash in our ZEC Coin Profile

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We Looked Into: ZK Proofs Privacy Protocol

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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.