EThereum daily

Tehreum is trading down $59 to $1378 today as the relentless selling around the 'merge' to a proof-of-stake model results in a heavy round of 'sell the fact' trading.

It's something I warned about last week:

"Crypto has a bad habit of 'sell the fact' trades around events and this one is another risk".

I also highlighted a brewing head-and-shoulders pattern. You can argue the neckline is already broken and the selling pressure would speak to that but those looking for more confirmation will note the line at $1354. A break there could open up another round of selling.

In terms of the fundamentals in broader markets, this isn't a great sign. Notably, this week is also the worst one of the year, seasonally for equities. Given that crypto has been a levered-beta trade on stocks, there's not a good reason to buy the dip here.