Ethereum: Is the Merge just a "Selling News" for ETH?
The merge brought success to Ethereum [ETH]. Wait… but that's not all, as ETH continues to fall despite this release.
The token's continued decline has attracted the attention of analysts in the crypto industry for them to take on the matter. Christine Kim, a researcher at Galaxy Digital, also joined the conversation with her valuable input. In a recent thread, Kim discussed why ETH has continued to be at lower prices since the Meltdown.
First of all, Kim mentioned that the "worsening macroeconomic backdrop" was one of the main reasons for ETH's repeated drop. She believes these macro conditions continue to cause declines in all risk assets, including traditional equities.
Kim then turned to the second reason as he addressed a major rumor circulating in the market that the merger was a "news sale event". This rumor further limits Ethereum's appeal to traders despite its "positive long-term effects".
The alternative dilemma
The ETH token continues to drop lower as mentioned above and is trading just under $1,450 at press time. According to data from Coin Glass, the token is down 3% at press time as the weekly loss has now grown to 17%.
This price movement allows FUD to gain a foothold in the crypto market as Fusion is supposed to follow the crypto trajectory. But the latest FOMC meeting and subsequent CPI report halted any upside momentum.
Another key indicator of the Ethereum network has been published by crypto security researcher Lucas Nuzzi. In a final tweet, Nuzzi claimed that Ethereum miners were staging a "revenge" following their latest liquidation. By his calculations, Ethereum miners sold $4.8 billion worth of ETH in just the last 48 hours.
Despite these setbacks, a rare glimmer of hope has appeared on Ethereum since September 17, as reported by blockchain analytics platform Glassnode. According to its latest update, ETH Exchange Outflow Volume (7d MA) has hit a one-month high of $27,526,216.
So where will ETH be?
While bearish influences continue to wreak havoc on major crypto assets, Ethereum has managed to make a successful Consolidation launch. Renowned crypto investor Arthur Hayes, co-founder of 100x, expressed his support for Merge.
He used Net ETH Emissions to show how energy emissions will decrease once the network has transitioned to a proof-of-stake network.
Sep 18, 2022