Ethereum feels the pinch this early. The trading volume at the receiver end is impacting Ethereum’s price.
The Merge is a significant event in the cryptocurrency industry and one that many are eagerly anticipating. Ethereum, in conjunction with the Beacon Chain will create a proof-of-stake system. This system will significantly reduce Ether’s energy consumption.
Despite the Merge’s promises of a new tomorrow for Ethereum, investors continue to have poor faith in the currency. The price of ETH plummeted significantly below the $1,500 support line on August 28 and has been stuck in that border for the past two days.
But traders have modest expectations. A source claims that trading volume dropped dramatically by 45 percent between August 28 and September 29. The decrease in total trading also caused a significant drop in transactions.
Ethereum trades at $1,580 as of writing. This is 1.7% less than the previous seven days.
Ethereum trading volume slow
Average daily seven-day Ethereum transactions has fallen to 42,490. It is a reflection of the current fears and outlooks of global traders. Merchants will not accept a lower coin price as a deal-breaker.
Other coins’ prices have rebounded from recent declines. Polygon and Cardano, however, are the best-known.
Perpetual Futures Contracts fell to an all-time low due to investor enthusiasm and a decrease in transaction and network activity.
Glassnode reports that the cryptocurrency reached a three month low on Perpetual Futures on August 28. It was caused by the first credit crisis ever recorded in cryptocurrency history, in June 2022.
Recent developments such as the Terra implosion and the relatively recent speech of Federal Reserve Chair James Powell can also be ascribed to the present price of Ethereum.
Crypto Braces for Much-anticipated Merge
The wider financial market responded very badly to the speech. Major stock exchanges saw declines between 1% and 2%. Coinglass data shows that both Ethereum and Bitcoin saw significant sales.
There have been both positive and negative comments about the merger, which is scheduled to occur in 15 days. Many are hopeful that the merger will bring Ethereum great things, while others doubt its positive effects on crypto.
Meanwhile, considering the volatility of the current cryptomarket, speculation is limited. Uncertainty remains as to whether the merge would result in a flourishing future for Ethereum or a downward spiral that leaves millions in turmoil.
It is possible to only imagine that this combination could benefit the very unstable alternative cryptocurrency.
Source: TradingView.com| Source: TradingView.com Featured Image from Coinpedia. Chart from TradingView.com