Ethereum’s performance has declined since the Merge event, which was widely anticipated. It was an important moment in the history of crypto.
The Merge, despite being expected to increase investor confidence and be a positive event for investors, came at the worst time.
This was an exciting time in crypto history. The update went up on September 15—just two days after the United States CPI data was made public.
There was a widespread selloff in the stock markets because of the Federal Reserve’s interest rate increase, reporting its annual inflation rate hike of 0.1%, and affecting the cryptocurrency market.
Bitcoin plunged 12.71% and Ethereum plummeted 12.67% on publication. The timing of the Merge’s launch was a last-ditch effort to maintain or perhaps boost investors’ trust. But, it didn’t actually happen.
Ethereum (ETH), Price Drop 21%
When everything was said and done, the Ether’s price had dropped by 21.1% compared to its 7-day moving average, as measured by CoinGecko. This is however refuted by @CryptoGucci (a Twitter user).
One Twitter user explained why the recent price decline shouldn’t be worrying. An example of this is the growing use Ethereum validators.
This increase in validators can improve the Ethereum blockchain’s overall efficiency.
The state of Colorado also accepts ETH payments through PayPal. The payment method can only be used by personal PayPal accounts, and is not available for commercial customers. This will nonetheless aid in the adoption of ETH.
Are There Any Chances of an ETH Recovery?
According to recent data, ETH has seen a positive price rise. After a near-freefall to $1,243, the price has rebounded and is currently trading between $1,221 and $1,323.
Many indicators indicate a growing bullish momentum. The value of the stochastic relative strengths index (RSI), has risen since the drop to critical support. This indicates investor confidence rebounding following a terrible few days.
Are new developments sufficient to stop the 0.75 percent rate hike? The cryptocurrency market is closely linked to the wider financial environment so the current movements could be temporary.
Wall Street’s indices have declined by a few percentage points as of this writing, and this decline can have a significant impact on the cryptocurrency market. Ethereum might see a gradual, but slow return to normal as the third fiscal quarter winds down.
Source: TradingView.com| Source: TradingView.com Image featured from CryptoMode Chart: TradingView.com
The analysis is a personal opinion of the author and should not be considered investment advice.