If you're looking to make some money off of the Ethereum merge, then you'll want to pay attention to these three strategies. By predicting the price of Ethereum ahead of time, you can make a lot of money off of this merger. So, make sure you keep an eye on the market and watch these three strategies closely.

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With the most-awaited upgrade to the Ethereum network from PoW to PoS scheduled for September 15-16, dealers as well as experts have been debating potential outcomes for the update and investment tactics for the past year.

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What is Ethereum Merge?

During the Ethereum Merge, the protocol for validating blocks and transactions on the Ethereum network will shift from PoW to PoS. The Beacon Chain is a Proof-of-Stake consensus layer system that is operating in tandem with the Ethereum network. Beacon Chain's Proof-of-Stake consensus mechanism will become the only means by which new Ethereum blocks are generated when the existing Proof-of-work Ethereum chain is merged with that too.

The Merge is almost finished, and other enhancements are planned over the next year or two, such as enabling higher throughput as more people utilize the blockchain. However, let us just examine what we can learn by examining the ETH price chart over the recent weeks.

For Ethereum Price Prediction, the following three strategies should be considered:

        1. Bullish Ethereum Merge Prediction

Vitalik Buterin, co-creator of Ethereum, seems to have a positive outlook on the Merge. In a recent speech at the Ethereum Community Conference (EthCC) in Paris, he made a major statement. Buterin predicts that four further upgrades will raise Ethereum's valuation after The Merge, when completely new scaling solutions arise for the blockchain. The price of ETH would rise if The Merge goes off without a hitch as well as the transition to a fully PoS network goes smoothly. If word gets out that the enterprise is succeeding, financiers may begin to pour in. It is possible that ETH may reach new record highs as speculators gain confidence in The Merge. Okay, so here's the scheme: you'll use something called a Poor Man's Covered Call. Poor Man's Covered Call on Bybit is the best ETH option strategy if you are enthusiastic about the Merge and think the market is still underpricing ETH after The Merge has occurred. To initiate a Poor Man's Covered Call strategy, one must initially purchase an In-The-Money call option with a long time before expiration and afterwards sell an Out-The-Money call option with a short time until expiration.

        2. Bearish Ethereum Merge Price Prediction

Just about nothing seems to go right with The Merge. Additional delays may occur if technical issues arise, such as rival blockchains or missing blocks. A disastrous Merge, critics say, could have a ripple effect across the Cryptocurrency market and undermine confidence in Ethereum-based decentralized applications. Even if the merger is successful, the price of Ethereum might still fall. This presupposes that most speculators want to sell their ETH in order to make a profit from the "Buy the rumor, sell the news" strategy. In any situation, speculators are expected to sell Ethereum (ETH) in favor of other Layer one blockchains including Solana (SOL), Avalanche (AVL), or Cosmos (COS). Let’s talk about the strategy: Bear Put Spread. You may establish a Bear Put Spread on Bybit if you are pessimistic about The Merge and think it will be a "Buy the rumor, sell the news'' occurrence. To execute a bear put spread, one must first purchase an ITM put option and afterwards sell an OTM put option that has the same expiry date. It's made so that investors may gain from trading depreciating assets. With a bear put spread, you may profit from both the decreasing ETH price and the time decay of the short choice at a lower cost than if you had purchased a put option alone.

        3. Neutral Ethereum Merge Price Prediction

Regardless of whether the Merge goes off as scheduled on the agreed day, the market may not react strongly one way or the other if the event has already been included into prices. Those who purchase Ethereum on The Merge with the expectation of future price increase may choose to hold onto their coins in the short term. A lack of demand would keep the price of ether stable. Since Ethereum as a whole still has a ways to go before it may be deemed a completed project in terms of overall scalability, this is conceivable even after The Merge. There will be a lot of work to do in the months after the integration, as Vitalik Buterin noted: "Ethereum will only be 55% complete post-merge." Let us talk about the strategy: Delta-Neutral Trade. This common neutral ETH trade consists of buying the spot price and selling the long-term futures contract. An investor who engages in a delta-neutral transaction is unaffected by the trend in ETH's price. Dealers stand to gain from both the delta-neutral deal itself and the hypothetical hard fork that might occur during The Merge, resulting in free ETH Proof-of-work coins which may be sold for higher yields. In the past, ETH Futures were always more expensive than ETH spots. As a result of the high demand from market participants, the price of ETH futures has fallen below the current price of ETH. This opens up another opportunity for a delta-neutral arbitrage trade, which is predicated on the futures prices rising again.

The Bottomline

Even as Merge's date approaches, excitement may return. If investors intend to acquire Ethereum in the coming years, consider the optimistic, bearish, as well as neutral conditions and their tactics. Ethereum might evolve into the most expensive blockchain. Merging is a positive move. Also with Merge's excitement, it really is vital to comprehend Ethereum's update. Check out Bybit Cryptocurrency Insight's Deep Dive just On Merge, where they discuss the developments in detail as well as clear up certain common misunderstandings about this pivotal moment.

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.