As expected, Ethereum is doing poorly after the much-hyped merger event. This was a great time for the crypto industry.
While the merger was expected to boost investor confidence, it came at the worst possible time.
The merger took place at an interesting point in crypto history. The update was added on September 15 – two days after the US CPI data was released.
There was a broad sell-off in stock markets as the Federal Reserve raised interest rates, announcing a 0.1% increase in annual inflation and impacting the cryptocurrency market.
On the day of publication, Bitcoin fell 12.71 percent, and Ethereum fell 12.67 percent. The timing of the merger was a last-ditch effort to maintain or boost investor confidence. However, that didn’t really happen.
Ethereum (ETH) price decreased by 21 percent
When all is said and done, Ether’s price is down 21.1% compared to its 7-day moving average as measured by CoinGecko. But @CryptoGucci, a Twitter user, disputes this.
One Twitter user explained why the recent drop in prices shouldn’t be a concern. A prime example is the increasing distribution of Ethereum validators on the blockchain.
This increase in verifications can improve the overall efficiency of the Ethereum blockchain.
Additionally, the State of Colorado accepts ETH as a payment method through PayPal. However, this payment method is limited to personal PayPal accounts, not business. However, this will undoubtedly help the adoption of the ETH ecosystem.
Is ETH Recovery Soon?
Recent data indicates that ETH is showing a positive price increase. After a free fall close to $1,243, the price recovered and is currently trading between $1,221 and $1,323.
Several indicators also point to an accelerating pace of violence. After breaking down to a critical support level, the Stochastic Relative Strength Index (RSI) values have increased, indicating that investor confidence is on the rise again after a few scary days.
But are the new changes enough to stop the current 0.75 percent interest rate hike? As the cryptocurrency market closely mirrors the broader financial environment, recent movements may be temporary.
Wall Street indices are down by a few percentage points as of this writing, and this decline has a significant impact on the crypto market. As the third fiscal quarter approaches, Ethereum may make a slow but gradual comeback.
ETH total market cap at $163.7 billion on the daily chart | Source: TradingView.com Featured image from CryptoMode, Chart: TradingView.com
(The analysis represents the author's personal views and should not be construed as investment advice).