Market Revival or Chaos? Ethereum’s Post-Merge Uncertainty and How to Prepare on Gate.io

Gate.io
2 min readSep 9, 2022

Ethereum’s Merge could be a make-or-break moment for the price of its native asset, Ether (ETH), and it may have big implications on the crypto market.

On a large scale, Ethereum has followed the overall decline of the crypto market this year. However, it recently outperformed Bitcoin and broke out of a falling wedge pattern, indicating some positivity. Regardless, a ‘sell-the-news’ type event and community division around a hard fork leave some worried.

There are downside risks to The Merge. So, as it approaches, what are some of the views?

The most significant event in crypto history?

The Merge is the most significant Ethereum upgrade to date, making Ethereum more efficient and environmentally friendly.

Travis Kling, CIO of crypto asset management firm Ikigai, considers the upgrade “the most significant catalyst in crypto history in terms of its magnitude and the fact that ETH is the second largest crypto.” And that it’s “laying the foundation for a more scalable chain, one which is more usable for the general public.”

Worries of a sell-off

Some are skeptical of the ability to change the market’s direction and that it’s a ‘sell-the-news’ event. For example, OIVS data from Glassnode is “indicating traders are paying a premium for ‘sell-the-news’ put option protection post-Merge,” according to Glassnode analysts. ETH traders are seeking risk protection against a sell-off after The Merge.

Moreover, a division in the Ethereum community has arisen. Ethereum miners will no longer earn income from proof-of-work after the upgrade, as proof-of-stake validators will replace them. This has led to miners proposing a hard fork, where they will split and create a separate forked Ethereum proof-of-work blockchain.

Supporting two sides of the same coin

Gate.io, one of the leading cryptocurrency exchanges, has come out to support all sides in the event of a hard fork. “We’ll respect the decisions of everyone in the Ethereum community– miners, validators, and users alike. Our first priority is to provide the most secure and comprehensive Ethereum trading services,” said Tom Yang, EVP at Gate.io.

To fully support the update with a responsible attitude, Gate.io opened trading on two IOU assets, ETHS (PoS) and ETHW (PoW), to help mitigate the risks caused by volatility during a hard fork. This approach allows users to participate in a new forked chain while reducing the exposure to volatility and uncertainty.

Gate.io has compiled detailed info about The Merge, potential hard fork, and ETHS and ETHW to help users be prepared and choose with confidence. If you want to be prepared, visit Gate.io’s Ethereum Upgrade and Hard Fork page for more information.

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