Why is Ethereum falling off after the merger?
Since the Merge, Ether has decreased by 15%, but why? Prior to the Merge, Ethereum miners sold roughly 30,000 ETH. Was there a new location for institutional investors after the Merge? The first smart contracts exploit is seen in Ethereum POW. Ethereum miners are likely to sell their ETH. After all, they are no longer able to mine. Selling their ETH would be a wise move if they were leaving Ethereum. Naturally, that was a significant factor in ether’s value decline during the Merge.
Everyone’s main concern is this query. The merger went well, and the new environment is operating efficiently. The supply is dwindling. Why, therefore, is the price falling? There is no definitive solution, as is customary with crypto. However, we can review a few theories. The current macro image is the first and most obvious cause. Considering the impending concerns of a recession, rising interest rates, a declining stock market, and a bear market in cryptocurrencies. It is projected that all cryptocurrencies would experience a decline, including $ETH.
In the weeks before the integration, $ETH performed well, with a price increase of about 20% over that of bitcoin in early September. This was most likely caused by the excitement around the merger. While every other cryptocurrency was falling, $ETH was holding strong. This indicated that the decline we are currently witnessing could possibly be attributed to a market condition’s delayed effect. The $ETH/$BTC chart provides additional evidence for this.
The propagation of false information prior to the $ETH merging is another conceivable explanation for the decline. Twitter users made claims that the merger will result in lower gas prices, quicker transactions, and other benefits. The official $ETH website states that this was never anticipated to occur.
More about Ethereum 2.0
People might have invested in $ETH based on false information and been unhappy to learn that it was not the case. They might have dumped their $ETH back into the market as a result of this. A less popular notion is that miners of $ETH are selling off their holdings. The mining industry was incensed by the $ETH merging. Their steady income has been replaced by income that is now distributed among stakeholder groups more fairly.
To continue operating their cash registers, miners developed ETHPoW, although ETHPoW has fallen by about 55%. Therefore, it is evident that their mining equipment is not generating a consistent and steady income. The miners might have been forced to sell more $ETH in order to cover their expenses and maintain a steady flow of fiat money as a result. This is supported by the surge of $ETH to exchanges.
Not to worry. Merging went smoothly. One percent of Ethereum is staked. The value of ETH has decreased. Additionally, 99.98% less electricity is being consumed by the blockchain, making bitcoin a more ecologically friendly and long-lasting cryptocurrency. All of this is excellent news for the cryptocurrency industry. Follow your own personal investing techniques, avoid being swayed by FUD, and never take on more risk than you can afford to lose.
