Merge-Focused Hedging Makes Ether Shorts Most Expensive in 16 Months

While the probability of the Merge failing is relatively low, ether’s price could drop after the upgrade for two reasons. First, ether has gained nearly 55% in the two months leading up to the Merge in a classic “buy-the-rumor” type move, and so some profit-taking may be seen after the Merge. Further, ether may not immediately become a deflationary currency with depreciating supply after the Merge, disappointing those positioned for that supposedly bullish effect to kick in right away.