Many emotions and reactions have hovered around the Merge upgrade to Ethereum. Different opinions crowd the crypto world on an institutional and individual basis. The mass accumulation of Ethereum tokens was one of the most notable displays. Many people believed the Merge would cause Ether to rise in price.
Participants bought more Ethereum in recent weeks. This led to increased activity on the Ethereum network. Accordingly, July saw a rising month for cryptocurrency. The result was that Ethereum’s price rose significantly despite the fact that the wider crypto market was experiencing a steady climb. Ethereum was one of top gainers at the start of July.
The sudden uptrend however seems short-lived. Ether has not been left behind as the crypto markets are experiencing the exodus of the bulls. Ethereum has been struggling over the past days. The ETH’s price trend data indicate a down-move for the past four days.
Currently, the market cap for the world’s second-largest cryptocurrency sits at $225 billion. ETH trades at $1,700 with a significant loss over the last 24 hours. Remember that Ethereum’s value increased by around 100% in July. Ethereum started to lose value since the beginning of this Week, as its price dropped.
For the token’s climb, the Merge news was the driving force. David Kroger of Cowen Digital said that institutional investors have shown more interest in the token.
Kroger mentioned that people have asked for information about the Merge’s probabilities, technicalities, and other details. Kroger said that there have been some people who are profiting off the Merge. The price decline could therefore be related to this.
Ethereum miners to succeed with detracting role
The price of ETH has dropped steadily over the past few days, making it difficult to imagine if this was the end for the euphoria that surrounds the Merge. The Ethereum community continues to support the Merge. ETH miners, however, are playing a negative role in the Merge’s demise. They intend to continue their mining operations and hard fork Ethereum’s blockchain once the Merge is over.
Vitalik Buterin (ETH founder) reacted to this situation and he snubbed such a decision. He stated that the Ethereum team wouldn’t support the Ethereum PoW version again once the transition to PoS is completed.
All the developments surrounding transition with care are not being reported by the wider market. Arthur Hayes (CEO of BitMEX), stated that traders will temporarily keep ETH if the Merge is unsuccessful.
Such failure would create a negative reflexive link between the level of ETH’s deflation and its price. He also mentioned the possibility that Merge success could cause a spike in the price of ETH.
Pixabay featured image and tradingView.com chart