The merger was a success for Ethereum [ETH]. Wait… but that’s not all as ETH continued to decline despite this exit.
The token’s continued fall has caught the attention of crypto industry analysts to offer their thoughts on the matter. Christine Kim, a researcher based at Galaxy Digital, also joined the conversation with her valuable input. In a recent thread, Kim explained why ETH continues to hold at lower prices since the merger.
🐼 The long-awaited Merge update finally went live on Ethereum yesterday after several years of research and development. The upgrade went better than expected and yet the price of ETH has gone down since Merge was activated. Why?
— Christine Kim (@christine_dkim) September 16, 2022
First, Kim mentioned that the “deteriorating macroeconomic backdrop” was one of the main reasons for ETH’s recurring decline. She believes these macro conditions continue to drive down all risk assets, including traditional equities.
Next, Kim moved on to the second reason where she addressed a major rumor circulating in the market that the merger is a “news sell event.” This rumor continued to keep Ethereum from attracting traders despite its “long-term positive impacts.”
The Alt Dilemma
The ETH token continued to decline as mentioned above and was trading just below $1,450 at press time. According to data from Coin Glass, the token was recording losses of 3% at press time, with weekly losses now accelerating to 17%.
This price movement gave FUD a foothold in the crypto market, as the merger was expected to bounce the trajectory of the crypto. But the latest FOMC meeting and subsequent CPI report put an end to any bullish momentum.
Another crucial indicator of the Ethereum network has been job by cryptographic security researcher Lucas Nuzzi. In a final tweet, Nuzzi claimed that Ethereum miners were planning a “revenge” after their last sale. According to his calculation, Ethereum miners sold up to $4.8 billion worth ETH in the last 48 hours only.
Despite these hurdles, a rare glimpse of hope appeared on Ethereum beginning September 17, as reported by blockchain analytics platform Glassnode. According to their last updateExchange Outflow Volume (7d MA) of ETH hit a one-month high of $27,526,216.
Where does that leave ETH then?
As bearish influences continued to wreak havoc on major crypto assets, Ethereum managed to successfully complete the launch of Merge. Renowned crypto investor Arthur Hayes, co-founder of 100x, further expressed his support for the merger.
He used ETH net emissions to show how energy emissions will now drop as the network transitions to a Proof-of-Stake network.
The only graph that matters after the merge.
—Arthur Hayes (@CryptoHayes) September 15, 2022