Bybit Arbitrage is a trading tool that simplifies arbitrage trading by capitalizing on funding rate and price differences.

If you're seeking consistent returns with minimal risk, Bybit Arbitrage is the perfect ally.

 This robust tool empowers you to generate regular profits with minimal risks by capitalizing on price disparities across different markets. Its user-friendly interface lets you easily spot and exploit these differences, so that you can execute flawless arbitrage trading in the crypto market with confidence. Read on to learn how Bybit Arbitrage makes arbitrage trading an effortless way for you to achieve low-risk gains.

 is the buying and selling of the same or similar asset(s) at the same time across different markets to earn from slight price deviations. This act of purchasing an asset at a fixed price — while simultaneously selling it at a higher price — allows a trader to instantly make profits without any risks. 

While arbitrage trading has long been a staple in traditional financial markets, such as stock and forex, the advent of crypto trading has propelled arbitrage trading to new heights — thanks to the heightened volatility of the crypto market. Additionally, unlike traditional stock markets, crypto markets are traded 24/7, offering more opportunities for arbitrage traders to reap profits from the price gaps across exchanges and markets. 

 across exchanges or within a single exchange. Keep in mind that if you opt to arbitrage trade across different platforms, accessing your profits may prove to be complex, due to the need to transfer your assets between the exchanges, which can take up to several days to complete. On the other hand, arbitrage trading on a single platform is more straightforward — but more competitive as well.

There are multiple arbitrage trading strategies, but the most common ones in the crypto market include funding rates arbitrage, spot-futures arbitrage and futures arbitrage. 

Funding rates arbitrage allows traders to profit from variations in funding rates between 

 contracts. In contrast, spot-futures arbitrage enables traders to profit from price disparities between the spot and 

 for the same asset. Meanwhile, futures arbitrage involves profiting from price discrepancies between futures contracts with different expiration dates.

Bybit Arbitrage is a trading tool that helps traders identify arbitrage trading opportunities in two ways: funding rate and spread. 

The user-friendly interface organizes trading pairs based on either funding rates or spreads in different markets, so that traders can easily spot disparities in funding rate or price across the markets at a glance. 

Bybit Arbitrage is exclusively available to 

 mode. It facilitates arbitrage trading for USDT Perpetual, USDC Perpetual and USDC Futures contracts, thereby allowing you to enjoy arbitrage trading opportunities between USDT 

Spot pairs and USDT Perpetual pairs, or USDC Spot pairs and USDC Perpetual/Futures pairs. 

The Funding Rate Arbitrage feature exploits differences in funding rates between the Spot and Perpetual/Futures markets on the Bybit exchange. With the Funding Rate feature, traders can earn funding fees while simultaneously managing their positions in order to minimize potential losses and maximize gains through positive and negative arbitrage strategies.

Funding rates for the different trading pairs are listed in descending order. This helps traders to easily leverage the interest rate differential between Spot and Perpetual/Futures contracts.

The Funding Rate feature also allows you to 

 orders (with the same amount, but in different directions) in both Spot and Perpetual/Futures, which enables you to earn funding fees while mitigating potential losses (with potential gains).

holders in Futures/Perpetual contracts pay short position holders. You can leverage this situation by executing a positive arbitrage, which involves

 buying a Spot pair and taking a short position in 

Perpetual to earn steady funding fees. Alternatively, if the funding fee is negative, short position holders pay long position holders. In this case, you would perform a negative arbitrage by shorting a Spot pair and going long in a 

The Spread Arbitrage feature helps traders capitalize on price discrepancies between different markets for the same cryptocurrency asset. With this feature, you can easily compare the market prices of an asset traded across various trading pairs and contracts. While Spread Arbitrage may be similar to spot-futures arbitrage, it offers more arbitrage opportunities since it covers a broader range of markets, unlike spot-futures arbitrage, which targets specific markets

With Spread Arbitrage, the aim is to profit from the eventual price convergence as you buy the crypto asset at a lower price in one market (e.g., Spot) and sell it at a higher price in another market (e.g., Futures). 

As the futures price will eventually align with the Spot price when the contract expires, you’ll be able to take advantage of the simultaneous price disparity for the same asset.

In order to trade with Bybit Arbitrage, you’ll first need to 

. Currently, Bybit Arbitrage is exclusively accessible via the 

 for the web version, which will be launched soon!

Bybit Arbitrage offers multiple advantages.

Bybit Arbitrage is a powerful tool for traders seeking low-risk gains in the volatile crypto market. With its intuitive interface and exclusive features, traders can effectively leverage funding rate and price differences to maximize profits while minimizing risks. Bybit Arbitrage offers diverse benefits that make arbitrage trading more accessible and profitable than ever before.

Beginner

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How to Use Bybit Arbitrage to Achieve Funding Rate and Price Difference Arbitrage

An Ethereum Spot ETF is an exchange-traded fund that tracks the real-time price of Ether and allows investment through traditional stock markets. Learn more.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) gave the green light to a number of Bitcoin Spot exchange-traded funds (

), sparking optimism that similar approval might be extended to Ethereum Spot ETFs. Adding to the excitement, news of Ethereum Spot ETF approval in Asia’s first region has heightened anticipation for a potential approval and launch in the U.S. However, despite the buzz, some industry observers remain skeptical. This article explores the potential impact of Ethereum Spot ETF approval on the broader crypto market.

An Ethereum Spot ETF is an exchange-traded fund that tracks the real-time price of 

 and allows investment through traditional stock markets. It offers investors a way to invest in Ether without having to actually buy or hold the asset itself.

An Ethereum Spot ETF operates by pooling investor funds to purchase Ether, which is held in reserves by the ETF.

Rather than navigating the complexities of 

 and exchanges, investors buy shares of the ETF through regular brokerage accounts, just as they would with traditional stocks. These shares represent a stake in the Ether held by the ETF, providing a simple and regulated way to own Ethereum indirectly.

In order to create ETF shares, authorized participants — usually financial institutions — purchase Ether in exchange for ETF shares of equal value, which are then sold onto the market. An authorized participant can also redeem shares by buying enough ETF shares and exchanging them for Spot Ether and taking those shares away from the market.

As a result, the price of ETF shares tends to fluctuate in line with Ethereum's Spot market price. If it didn’t, there would be an 

 opportunity to profit from any mispricings in the ETF price. However, it’s still theoretically possible for the ETF to trade at different prices simply because of supply-and-demand factors.

ETFs as securities are regulated by the SEC, so an Ethereum Spot ETF provides a regulated product that investors can purchase. By contrast, Spot Ether is being investigated by the SEC to determine whether it should be classified as a security, and currently lacks regulatory clarity. 

This setup offers numerous benefits for investors. It simplifies the investment process, allowing anyone with a brokerage account to invest in Ethereum without setting up a crypto exchange account or managing storage. This can save time and give some investors greater peace of mind. An ETF structure also provides the regulatory clarity that institutional investors need, which can enhance liquidity and trading volumes.

Security is paramount in the realm of cryptocurrency, and the ETF provider takes it seriously. To safeguard Ether holdings, ETF providers employ a combination of 

 and insured custodial services. As a result, they could potentially minimize the risk of theft or loss that individual crypto investors may encounter.

The Ethereum Spot ETF bridges traditional finance (TradFi) and the exciting (but still growing) cryptocurrency space. It offers the security and ease of trading associated with traditional financial markets while opening up investment opportunities in Ethereum for a broader audience.

Both excitement and regulatory scrutiny characterize the current landscape of Ethereum Spot ETFs. Major financial institutions like 

 and Fidelity have submitted applications for these ETFs to the SEC. Still, decisions have been delayed, with the next 

If applicants begin updating their filings by April, this may indicate they’re incorporating feedback from the regulator, which could be interpreted as a positive sign. However, a lack of updates to filings could indicate that the SEC isn’t maintaining the same level of discussions with issuers that led to its 

Another challenge is that the SEC is still investigating whether Ether should be classified as a security, especially since it transferred its consensus mechanism to 

. Earning rewards through staking could meet criteria that determine whether an asset is a security. Ethereum also provides a foundation for 

 (DeFi), which could add to the complexity of the review. 

Analysts' opinions vary regarding the likelihood of ETH ETF approval. One Bloomberg analyst, for instance, 

 chance of approval by May. However, the SEC's recent silence might hint at a less favorable outcome.

The approval of Ethereum Spot ETFs is eagerly awaited because it could mirror the impact of Bitcoin Spot ETF approval, which led to an influx of capital in the market. It would mark a pivotal milestone, likely to attract increased investment and further validate cryptocurrency. The crypto community is closely monitoring these developments, as the coming months will be crucial in shaping the future of Ethereum investment opportunities.

 was recently given to the first Spot Bitcoin and Ethereum ETFs in one of the Asian regions. This landmark decision positions the city as a trailblazer in the Asian financial landscape, embracing the integration of popular cryptocurrencies into mainstream investment avenues.

This milestone has sparked excitement within the crypto community, indicating a positive reception toward digital assets in that region. Analysts believe this move could set a precedent for other jurisdictions to follow, potentially leading to broader acceptance and recognition of cryptocurrencies as a legitimate asset class.

These newly approved ETFs are expected to attract a wave of fresh investors — both retail and institutional — by offering a regulated and familiar investment option for exposure to cryptocurrencies. This growth of interest could increase stability in the crypto markets, possibly influencing the price movements of Bitcoin and Ethereum in the region.

The timing of this approval is noteworthy, considering that the U.S. could also be on the cusp of approval of an Ethereum Spot ETF. If this proactive approach inspires other financial centers beyond the U.S. to consider similar approvals, it will palpably contribute to the global expansion and maturation of the cryptocurrency market.

Current Impact of Ethereum Spot ETF Applications on the Crypto Market

The buzz surrounding Ethereum Spot ETF applications is noticeably affecting the crypto market, particularly Ethereum's price and overall sentiment. Submission of new ETF applications to the SEC has coincided with an 

, pushing it to around $3,700. This uptick reflects the market's optimism and positive sentiment regarding the potential for easier access to Ethereum. However, the market has exhibited some volatility as well, with Ether dropping over 14% in a week in early April. 

Despite these fluctuations, there's a general expectation that ETF developments would significantly impact Ethereum's price dynamics, similar to what was observed with the recent Bitcoin Spot ETF approvals. Moreover, the recent approval of cryptocurrency ETFs has further fueled optimism and positive expectations for increased investment inflows and a broader recognition of cryptocurrencies.

To sum up, the current impact of Ethereum Spot ETF applications on the crypto market is marked by heightened anticipation along with some volatility. Ethereum's price is responding to changes in the regulatory landscape and the potential for broader adoption of cryptocurrency-based investment products.

What Will It Mean if an Ethereum Spot ETF Application Is Approved?

The approval of an Ethereum Spot ETF application by the SEC would mark a significant milestone for the cryptocurrency market, especially for Ethereum. Following are some of the potential benefits.

Drawing parallels to the earlier Bitcoin Spot ETF approvals, some pundits expect an initial surge in Ethereum's price following the expected announcement, reflecting renewed confidence and interest in Ether as an asset. Over the long term, Ethereum Spot ETFs could contribute to growth and stability, similar to the impact that Bitcoin Spot ETFs have had on BTC’s price.

However, there are key differences to consider. The SEC's cautious stance on Ethereum — notably because of its PoS consensus mechanism — could influence the approval process and subsequent market reactions. In addition, Ethereum's unique ecosystem, including its role in DeFi and 

, could lead to different market responses as compared to those following the Bitcoin Spot ETF approvals.

The potential approval of Ethereum Spot ETFs is a crucial turning point for the crypto market, promising easier access, increased investment and greater legitimacy. Although short-term price fluctuations may occur, the long-term effects could echo the positive growth recently witnessed with Bitcoin Spot ETFs, promoting a more mature investment environment for Ethereum.

Intermediate

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Ethereum Spot ETF Approval: Its Impact on Crypto Markets

Grayscale Investments has filed a registration statement on Form S-3 with the SEC to register shares of its Grayscale Ethereum Trust (ETHE) as part of efforts to uplist the trust to a spot Ethereum ETF on the NYSE Arca.

Daily Top Performer — Automata Network (ATA)

The SPX index is up 0.02%, investor focus on earnings and U.S. interest rates continues. The broader cryptocurrency market is down, with Bitcoin and Ether dropping by 3.78% and 2.41%, respectively in the past 24 hours.

Today’s outperformer is ATA, which jumped 8.9% after Automata launched Multi-Prover AVS on Eigenlayer Holesky Testnet to boost decentralized security.

Automata Network (ATA), founded in 2019, is a Web3 platform providing private web services for decentralized applications, focusing on secure, anonymous transactions and governance. Key features include a private voting system and MEV minimization to enhance user privacy and security. Automata's Multi-Prover AVS, which utilizes TEE Coprocessors to enhance security, is now available on the Eigenlayer Holesky testnet. This system employs the TEE Prover as a secondary security measure in decentralized systems. Operators, restakers, and developers are encouraged to learn more about this advancement on their website.

Check Out the Latest Prices, Charts, and Data of 

Grayscale Investments, the world's largest crypto asset manager, has filed a registration statement on Form S-3 with the SEC to register shares of its Grayscale Ethereum Trust (ETHE) as part of efforts to uplist the trust to a spot Ethereum ETF on the NYSE Arca. This filing follows NYSE Arca’s application and is a crucial step in the regulatory process required for offering shares continuously upon approval. The shares will not be sold until the registration is declared effective, and this offering is subject to the Securities Act of 1933. Grayscale emphasizes that the trust, not registered under the 1940 Act, involves high risk and volatility, is focused solely on Ethereum, and does not offer direct investment in Ethereum.

BlackRock's spot bitcoin ETF, IBIT, has significantly impacted the firm's overall ETF flows, comprising 24% of its total. Eric Balchunas, Bloomberg's Senior ETF Analyst, highlighted the fund's success during a panel on Hong Kong's newly approved spot crypto ETFs. Since its launch in January, IBIT has attracted consistent inflows for over 70 days, accumulating more than $18 billion in assets under management and becoming one of the most successful ETFs in history. The IBIT fund is second only to Grayscale's ETF in terms of assets but has seen remarkable trading volume along with other spot bitcoin ETFs, totaling nearly $230 billion.

Gamium, supported by Parachain Ventures, DAO Maker, and Mr. Beast among others, has its token $GMM listed on major exchanges with a fully diluted valuation of around $43M. The platform is promoting a beta points airdrop to reward early users, where participants can sign up and earn points through various activities like launching an MST, trading, daily logins, and referrals. Details on point earning and distribution are available in a dedicated blog post. However, potential users are cautioned to research due to the inherent risks associated with DeFi protocols and trading.

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Grayscale Files for SEC Registration to Convert Ethereum Trust into a Spot ETF on NYSE Arca

Sharky is a Solana-based lending and borrowing DeFi solution that utilizes NFTs as loan collateral.

Cryptocurrency lending and borrowing has always been a prominent niche of the decentralized finance (

) industry, championed by platforms like Aave (

). A much rarer variant of DeFi borrowing and lending is based on non-fungible tokens (

Sharky.fi, or simply Sharky, is a Solana-based lending and borrowing protocol that uses NFTs as collateral to facilitate the DeFi processes on the network. By putting up NFTs as collateral, users can borrow funds via short-term loans in Solana's native SOL tokens. For lenders, the platform is also a great way to earn high APY rates in just 7 to 14 days, while having their loaned funds protected by the NFTs.

Having established itself as the leader of NFT-based lending and borrowing on Solana, the Sharky project has ambitious plans to integrate two more highly popular crypto asset types — Ordinals and real-world assets (RWAs).

 (SHARK) is a lending and borrowing app on the 

 (SOL) blockchain that lets users provide NFTs as collateral to access short-term loans in SOL tokens.

 Lenders can view NFTs offered as collateral, and make loan offers secured by their preferred NFTs.

Although Sharky's public launch on the Solana mainnet dates back to April 2022, the platform operated without its 

, SHARK, for its first two years in the market. The SHARK token was eventually launched in mid-April 2024.

Using its innovative business concept, Sharky quickly established itself as the leader of NFT lending. According to the project’s team, Sharky has a 90% share of the NFT lending market on Solana and has issued more than 1.4 million NFT loans.

Following the recent launch of its SHARK token, the project aims to integrate additional crypto asset types in the future. These include 

 (RWAs). Another ambitious product type considered for future implementation on the platform is uncollateralized consumer loans.

As a lender on Sharky.fi, you can browse NFTs from a variety of collections offered on the platform and make a loan offer for potential borrowers. The collections available on Sharky include the platform's own 

 collection, Mad Labs, Solana Monkey Business (SMB), Tensorians, Namaste and more. Lenders’ offers are shown to potential borrowers on the platform, who then choose the best offer based on their borrowing needs.

The NFT provided by the borrower is used as collateral, and the lender makes their funds available in SOL tokens. Lenders earn interest on the funds, with the loan duration typically between 7 and 14 days. Interest rates, naturally, will vary depending upon on-platform activity. Usually, 

 for active loans range between 120% and 220%, though they can go up to 360%. As such, Sharky loans are an excellent way for lenders to earn some serious interest quickly. If a borrower fails to repay the loan in full, the NFT used as collateral is transferred to the lender.

For borrowers, the Sharky platform is an excellent opportunity to access SOL funds for short-term needs quickly and flexibly using their NFTs, rather than cryptocurrency, as collateral. The best part of the platform's borrowing mechanism is that you remain in possession of your NFT during the loan period as a borrower. While your NFT is used as collateral, its ownership isn't transferred to the lender while the loan is active. The ownership transfer may only happen at the end of the loan period if you fail to repay the loan in full.

Maintaining the ownership of your NFT allows you to keep using it on various DeFi and other apps for purposes such as staking or satisfying 

 eligibility requirements, among other potential uses.

Sharx is the platform's own NFT collection. One of the most popular collections used in Sharky's lending and borrowing operations, sharx is made up of 10,111 adorable shark characters. Purchasing a sharx NFT not only opens up borrowing opportunities but also entitles you to upgrade or boost your Chowder points, rewards that are used in Sharky's loyalty program. 

As a sharx holder, you're entitled to the airdrop of Sharky.fi’s governance token, SHARK, and you can also stake sharx to earn FISHY tokens.

The newly launched SHARK token is envisioned as the platform's governance asset, with a total supply of 100 million. As of the time of writing in late April 2024, only some specific details on the actual governance processes powered by SHARK are available. Thus, the token's actual use in on-platform governance is expected to be outlined in the future.

SHARK will be airdropped in two phases, with 4.25% set aside for the first phase and 3.5% for the second. Of the former, 70% is allocated to its community, with the remaining 30% is distributed to partner communities. Meanwhile, the second phase is held as a staking pool event with a lockup duration of 30 to 60 days exclusively for OG, new users and sharx holders.

 of Sharky. Unlike the brand-new SHARK token, FISHY was issued back in 2022 at the start of the platform's operations. FISHY can be earned by staking sharx NFTs, accumulating reward points and participating in Sharky's social media campaigns. The token can be used to boost sharx NFTs, which in turn can earn you additional Chowder points. FISHY also gives you access to NFT raffles and auctions held on Sharky.

The SHARK token can be bought on Bybit through a Spot pair with USDT (

). Additionally, you can also take part in Bybit's current campaigns for the token for the chance to grab a share of the 

, which includes a Token Splash event featuring 456,000 SHARK through Apr 30, 2024, 9AM UTC, and a Lucky Draw with 58,000 SHARK in rewards through Apr 30, 2024, 9:59AM UTC.

Lending and borrowing using NFTs as collateral is a novel concept that has earned Sharky leadership positions in this niche. As more platforms adopting this business model emerge, the competition in the field is likely to intensify. However, as of now, Sharky remains the absolute leader of the Solana-based NFT lending and borrowing market. 

As NFTs experience a resurgence in popularity following the post-2021 dip, DeFi solutions that make innovative use of these assets, such as Sharky, stand to benefit. Later in 2024 and beyond, we’ll likely hear more about NFTs being used as legitimate collateral in crypto finance — a new trend helped to no small degree by the Sharky platform.

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Sharky.fi (SHARK): The Decentralized Platform for Instant NFT Loans

Bybit Learn

Strategies

Not sure what to do after the Ethereum Merge? Read on as we offer post-Merge price predictions for Ethereum and suggest trading strategies that you can adopt.

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As the first-ever post-Merge upgrade for 

 is a major step in the right direction for the popular smart contract network. In essence, it aims to enhance the world’s second-largest cryptocurrency project by delivering upon previously made liquidity promises and general improvements that make interacting with 

Keen on learning more about how the Ethereum Shanghai network upgrade impacts 

’s price post Ethereum Merge? In this article, we go through why everyone’s excited about it and the possible courses of action you can consider taking after the network upgrade is completed.

Prior to The Merge, there was another network running parallel to the Ethereum chain known as the Beacon Chain, which uses a PoS consensus layer. Upon The Merge, The PoW Ethereum chain merged with the Beacon Chain. This means that blocks on Ethereum will only be produced through the Beacon Chain using its PoS consensus model. 

Why Was Everyone Excited About the Ethereum Merge?

After a six-year wait, Ethereum finally merged with its Beacon Chain to become a PoS blockchain on Sep 15, 2022. The Merge made the Ethereum blockchain faster, more scalable and more efficient. This highly anticipated event had driven up the hype among investors, raising enthusiasm and causing the price of ETH to soar just before the actual Ethereum Merge since its lows in June 2022.

As a result of The Merge, the blockchain is now more energy efficient as the PoS mechanism uses roughly 99% less energy than the power-hungry PoW mechanism. It’s believed that The Merge is also going to reduce processing times, lower transaction fees and help the blockchain scale in the future.

After The Merge, rewards no longer goes to miners. They go to stakers instead, which levels the playing field for Ethereum community members and network participants. Instead of an expensive mining rig, all one needs to be a validator is to simply stake 32 ETH and some simple software. This offers greater decentralization and security, as it is now cheaper and easier to run a node in the future. In addition, utilizing PoS opens the door for scalability via sharding, which may someday allow for up to 100,000 

The supply of Ethereum could turn deflationary in the future if more ETH is burned during transactions than distributed through inflation. This depends on the activities that occur on-chain, and whether users feel incentivized to use the Ethereum blockchain over other Layer 1 blockchains. However, the Ethereum Foundation has said that the change in consensus mechanism will have little impact on transaction fees. 

Ethereum has planned a number of major network upgrades following the Merge — Surge, Verge, Purge and Splurge. 

The first upgrade, Surge, will implement sharding to improve the scalability of the Ethereum network as a whole. It includes the Ethereum Shanghai upgrade, which acts like a primer that prepares Ethereum for what is to come post-Merge and is expected to be executed by March 2023. The Ethereum Shanghai upgrade grants validators the ability to withdraw their staked ETH from the Beacon Chain. 

. This upgrade provides smaller and thus more efficient proof sizes, allowing more users to become validators as less data storage is required with smaller proof sizes.

The Purge will remove the use of nodes to store Ethereum transaction history, thereby helping validators free up the spaces in their hard drives.

The final upgrade, Splurge, will help to ensure that the previous four upgrades are carried out smoothly.

Post Ethereum Merge Price Prediction: 3 Potential Outcomes

Ethereum after The Merge generated a lot of hype and speculation as traders wondered how ETH prices would react to the hotly anticipated upgrade. Since taking a huge tumble on Sep 15, 2022 after The Merge was executed, ETH’s price has recovered considerably and currently sits at $1,557 at this time of writing (Jan 17, 2023). With the Ethereum Shanghai upgrade on the horizon, speculators can’t help but predict how ETH will react to this network upgrade.

In the grand scheme of things, the Shanghai upgrade will certainly boost Ethereum’s potential as the preferred smart contract platform as nagging issues like lack of staked ETH withdrawals and wasted gas fees are fixed. However, when considering a shorter time frame, ETH prices could definitely whiplash thanks to the volatility involved.

Keen to learn how to trade the volatility in the meantime? To take advantage of the massive instability after the Shanghai upgrade is executed, we’ll take a look at three potential outcomes and what you can do as a retail trader in each of these specific circumstances.

Before diving in, here’s an overarching table that summarizes each trading strategy in a nutshell:

Bullish Post-Merge Ethereum Price Prediction

Following the Ethereum Merge, four other upgrades are to follow according to the project’s official roadmap. These are meant to improve Ethereum's long-standing stability and scalability. According to Ethereum co-founder Vitalik Buterin's comments during the 

, the Surge will boost Ethereum's transactions per second (

), allowing it to hit 100,000 TPS. This will be achieved as the smart contract platform integrates the use of 

 through sharding to boost scalability. In order to achieve this scalability goal and successfully implement the Surge, delays must be minimized where possible. That's where the execution of the Ethereum Shanghai upgrade comes in.

If the Ethereum Shanghai network upgrade happens without a hitch, this would certainly be bullish for the price of ETH. Investors might start to pile in once they hear the good news about how Ethereum is progressing with its roadmap. Additionally, thanks to the possibility of withdrawals, more users could choose to stake their ETH without fear of their ETH being locked away. This would improve the security of the Ethereum network and make ETH increasingly deflationary as more validators begin staking among the crypto community.

Optimal ETH Option Strategy: Bull Call Spread

If you’re bullish and believe that the market is still underpricing ETH upon the Shanghai upgrade's completion, an optimal ETH option strategy would be the Bull Call Spread on Bybit. To open such a derivatives strategy, you’ll have to first buy an ATM call option that’s far from expiry and then sell an OTM call option that’s of the same expiry date. 

Overall, this trading strategy is popular among traders because it limits your losses while ensuring a huge upside should ETH prices trend upward.

First, buy an ATM ETH call at a strike price of $1,500 that expires at the end of March. Next, sell an OTM ETH call option that’s expiring at the end of March. In terms of the strike price, we’d suggest looking at contracts between $1,600 to $1,800 as this falls within the 0.1 to 0.2 delta range.

 Difference Between The Call Strikes - Net Debit Paid

 Long Call Strike Price - Net Premium Paid

Bearish Post-Merge Ethereum Price Prediction

If our bullish post-Merge Ethereum price prediction seems a bit too ideal for your liking, don't fret, our bearish price prediction has you covered. On the opposite end of the spectrum, staked ETH withdrawals could mean a massive dump in ETH prices as close to 16 million ETH locked away since December 2020 await withdrawing. This is because ETH prices have nearly tripled since they were originally staked and it would make sense for ETH investors who originally staked their ETH to take profit. Ultimately, such profit-taking behavior would cause ETH prices to dump in a "buy the rumor, sell the news" manner that's similar to how ETH reacted post-Merge.

Optimal ETH Option Strategy: Bear Put Spread

If you’re bearish about the Ethereum Shanghai upgrade and believe that traders will withdraw their ETH and take profit, you can maximize your profit by opening a 

A bear put spread essentially means that you buy a put option and sell an additional out-of-the-money put option with the same expiration date. It’s designed to help traders profit from assets which are decreasing in value. A bear put spread is cheaper than buying a put option only, and benefits from the price of ETH falling in addition to the time decay of the short option.

To open the trade, first buy an ATM ETH put contract with a strike price of $1,600 that expires at the end of March. 

Next, sell an ETH put contract that also has a similar expiry. When it comes to the strike price, we recommend selecting a put contract between $1,300 to $1,500 as these put contracts fall within the 0.1 to 0.2 delta range.

Difference Between The Put Strikes - Net Debit Paid

Long Put Strike Price - Net Premium Paid (Premium Paid - Premium Sold)

Neutral Post-Merge Ethereum Price Prediction

In a circumstance where the catalyst has been priced in, the price action would remain neutral, neither rising nor falling much. Investors might HODL their ETH through the Ethereum Shanghai upgrade, as they believe in its long-term appreciation. Furthermore, it wouldn't make sense for long-term investors to sell close to the bottom during a crypto bear market. If there happens to be little buying or selling pressure, this would thus cause the price of ETH to remain flat.

Also, to support this neutral Ethereum Shanghai upgrade price prediction, many ETH enthusiasts see this as a minor upgrade in comparison to the Surge. Therefore, there'd be little reason for there to be huge spikes in prices if this mindset holds true.

Optimal ETH Option Strategy: Cash-and-Carry Arbitrage Trade

Noticing the upgrade news impacting the sentiment of ETH futures? Cash-and-Carry Arbitrage trades are the optimal way to profit from this as you take advantage of the price difference between the Futures and Spot prices.

Thanks to their market neutrality, traders will minimize volatility and guarantee small but risk-free profits with each trade. Do take note that this arbitrage trade will only be viable if the short Futures position exceeds the cost of the long Spot position.

To begin, buy multiple ETH for $1,580 to establish your long Spot position. Then sell an equal number ETH MAR Futures contract for $1,586. With each arbitrage trade, you'll be profiting about $6 from each spread. By performing this near risk-free trade, you’re exploiting the existing sentiment and profiting without exposure to any directional risk.

With the Ethereum Shanghai upgrade having an estimated March 2023 execution date, ETH stakers have until then before they’re finally able to regain their liquidity and withdraw their staked ETH. Keen on also staking your ETH but don’t want to lock in your assets in the meantime? Make sure to check out 

 for our flexible staking ETH product. Unlike the conventional means of staking ETH, participants are granted full liquidity as they can stake and withdraw their ETH for however long they may want. This will grant you some bonus yield on your ETH as you HODL through volatile times.

Here’s how you can start earning yield on your ETH with Bybit:

Your first rewards payout should appear two days after each deposit. Your rewards payout depends on the amount of ETH staked, and should appear daily after your yield has been calculated.

Overall, Ethereum post-Merge shows that it is fantastic for long-term investors with the Ethereum Shanghai upgrade. By granting liquidity and tidying up loose ends, Ethereum's future as a 

 has never looked brighter. Yet one can't help but wonder about Ethereum's price in the future in light of current bleak macroeconomic conditions. That's why, in addition to HODLing, crypto traders can take advantage of any near-term catalysts to generate extra yield and make the most out of the situation.

Whether you’re a long-term investor or short-term speculator when looking at our post-Merge Ethereum price predictions, you can invest in ETH and all other kinds of cryptocurrencies by 

 and beginning your crypto investing journey today.

Ethereum Price Prediction: How To Trade ETH Post-Merge

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