After 24h The Merge Seems To Have Too Many Reasons For ETH Dropping

After 24 hours, The Merge was successful, the 2nd largest cryptocurrency in the market, ETH dropped shockingly, its value dropped by nearly 9%. It seems that there are a lot of direct and indirect causes that are causing the price of red candles to appear on the price chart of ETH.

It has now been 24 hours since Ethereum’s historic upgrade, The Merge was completed. ETH price at one point dropped to $1,446, 12.6% lower than the peak of $1,655. This is the lowest price ETH has recorded since August 28, erasing the bullish momentum gained thanks to The Merge.

Currently, the price of ETH has shown a slight sign of recovery as it recorded a price drop of 8.78% within 24 hours, currently trading at $1472.

The direct cause of the decline in the price of ETH does not seem to be difficult to see that investors are losing their motivation to hold ETH. The current upgrade does not have significant or breakthrough changes for Ethereum in the near future, because according to founder Vitalik Buterin, The Merge success is only 40% of the way of Ethereum.

Besides, The Merge took place, the supply of ETH to the market has now returned to “inflation” because the block creation reward is larger than the amount of ETH burned because the network is inactive.

In addition, the SEC chairman’s statement was recently coined as a hint that Ethereum will be watched because its new staking model qualifies as a security.

Currently, the whole market is still falling, the US inflation has not been overcome. Therefore, the Fed’s rate hike index in the next meeting on September 22 will have a great impact on the crypto market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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