With just over two weeks to go before the merger, Ethereum’s value against the US dollar has lost all of the gains the crypto asset saw before the hardening date. In mid-August, Ether managed to climb above the $2,000 zone, but since then the second-largest cryptocurrency by market capitalization has lost 23% in the past 14 days. Today, Ethereum is the worst performing crypto among the top ten coins, losing nearly 10% in 24 hours.
Market watchers say “Ethereum ran the pump, now it’s running the dump”
On July 14, Superphiz, community manager of the Ethereum Beacon chain share a penciled timeline regarding Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), and the unofficial timeline noted that the merger could take place on September 19. Since then, the USD value of Ethereum has jumped significantly, reaching $2,030 per unit on August 14. Meanwhile, Ethereum developers hardened Melting date By adjusting the discrepancy of the consensus layer at the moment when the total difficulty of the terminal (TTD) of the Ethereum network reaches 587500000000000000,000.
From that day on August 11, the USD value of Ether remained high, but the price fell about three days later. ETHEthereum’s value dipped to a low of $1,569 per unit on August 20, but managed to rally back above the $1,700 per unit range on August 25. On this day, two days ago, Ethereum developers released an official timeline for The Merge called the “Mainnet Merger Announcement.” Since the official news broke, Ether has slipped below the $1,700 zone to $1,649 on Friday morning (EST).
Jerome Powell’s speech in Jackson Hole on Friday caused an immediate downturn in equity and cryptocurrency markets, and ETH lost even more gains in Friday night (EST) trading sessions. ETHThe value of the US Dollar fell to a low of $1,469 per Ether on Saturday August 27, 2022, and support around the $1,500 per line of units has formed. So far, it looks like “The Merge Trade” isn’t holding up as well as many thought, and it could very well have been a “sell the news‘ an event.
Many observers explained last week that it was possible that the hype of The Merge was over just after ETH reached $2,000 per unit. “[Ethereum] drives the pump, now he drives the dump. If traditional markets see a comeback after the relief rally, [The Merge] the hype is over [in my humble opinion] and [ethereum’s] local top is in”, an individual wrote on social media on August 20.
“[Ethereum] going to have a big comeback after the merger hype dies down,” another person commented on Twitter. Also, a number of traders have been successful in cashing out gains when ETH reached $2,000 in mid-August, when a shameless person wrote:
Sold more ethereum today, I’m idgaf about your merger, I’m increasing the quality of life for my wife and child tenfold.
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What do you think of The Merge hype erasing crypto market valuations? Let us know what you think about this topic in the comments section below.
Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News about disruptive protocols emerging today.
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