Ethereum [ETH]: Read this before you decide to cash in on that FOMO

ambcrypto.com:

There is undeniable excitement in the market as the Ethereum Merge draws closer. The same is evident in ETH’s price action too, with the same managing to rally back above the $2,000-price level. Now, it is easy to get caught up in the hype and the FOMO, but ETH traders should be wary of potential risks ahead.

ETH recorded a high flow of capital over the last few days and this triggered more upside on the chart. The FOMO and excitement around the Merge is only expected to continue increasing. However, investors should note that the Merge is still a few weeks away. The euphoria, as a result of the aforementioned price gain, creates opportunities for unexpected shorting by whales. Hence, there’s a serious need to tread carefully.

Futures long liquidations have tanked drastically since 9 August as the price sought more upside. This has allowed leveraged long positions to thrive in current market conditions. On the other hand, Futures short liquidations recorded a sharp incline on 9 August, but they started dropping the next day. In fact, that has been the case since.

Source: Glassnode

The drop in Futures short liquidations suggests that investors are jumping onto the bullish bandwagon. Meanwhile, at press time, ETH’s dormancy metric was in the lower range of its 4-week performance. This means investors are opting to hold on to their coins rather than selling in anticipation of higher prices.

Source: Glassnode

ETH’s dormancy metric aligns with the observations regarding long and short positions in the market. Furthermore, this confirms that there is strong demand for ETH and low selling pressure. Worth pointing out, however, that the Merge is still weeks away. And, a lot can happen between now and then.

One possibility is that