On Thursday, Ethereum dropped below $1,600 despite completion of the much-anticipated Merge event. This event witnessed a transition from proof-of work (PoW) to a proof of stake (PoS). Bitcoin was also lower in today’s session, with the token falling below the $20,000 level.
Bitcoin (BTC), which fell to $20,000 Thursday due to bearish sentiment around cryptocurrencies.
The crypto market has been affected by a red tsunami following the release of U.S. inflation data this week. Bitcoin fell more than $2,500 in the past week.
This carried over into today’s session, with BTC/USD slipping to an intraday low of $19,793.40 earlier this morning.
The decline comes less than a day after the world’s most valuable token traded at a peak of $20,370.00.
This chart clearly shows that prices broke away from a support point at $20,200. That was the last defense line for bulls.
BTC bulls seem to have responded somewhat as of this writing with the token trading near the support level of $20,150.46.
The world’s attention was on The Merge on Thursday, as ethereum (ETH) migrated from proof-of-work (PoW), to a proof-of-stake (PoS) system.
As a result of Thursday’s highly anticipated switchover, it is reported that worldwide electricity consumption will be reduced by 0.2%.
The intraday high of $1,572.60 for ETH/USD was maintained despite this. Markets seemed to already have priced the move in.
The completion of The Merge saw ethereum fall below $1,615, putting it closer to a one week low.
Many believe bears are trying to lower prices. Some even think that $1,550 may be their exit goal.
This period will see volatility rise as more uncertainty surrounds the Merge event and its implications for the value future of ethereum.
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The Merge will have a long term positive effect on the price for ethereum. Please leave your comments.
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