After a strong rally since the beginning of July 2022, the crypto market is once again under selling pressure. The broader crypto market has been in a retreat for the past four days with the price of Ethereum falling below $1,850.
At press time, Ethereum (ETH) was trading at $1,843.86, down 5.46% over the past 24 hours. It is worth noting that ETH has gained almost 100% since the beginning of July, especially as the community awaits the much-awaited Ethereum merge upgrade, reviving hopes of reclaiming the $2,000 level. Waking up from
According to David Kroger, a digital data scientist at Coen Digital, investors and institutions are already gearing up for the merge. Kroger sad:
“Institutions have been asking us about the merger for several months now, as well as the technicalities and possibilities associated with it.”
However, Kroger noted that some players are already making profits at the current ETH price and this could be one of the reasons why the price of Ethereum is currently falling.
Is the merge craze coming to an end?
While the larger Ethereum community has shown support for Ethereum merges, some, particularly miners, are working to fork the Ethereum blockchain to continue using the proof-of-work (PoW) version of Ethereum.
Vitalik Buterin has however opposed the idea of forking Ethereum to continue using the PoW consensus mechanism, stating that Ethereum will no longer support PoW once the transition to the PoS model is complete.
BitMEX CEO Arthur Hayes, however, cautioned that there could be a minor race for ETH if the merge is not successful. He Told,
“If the merger is not successful, there will be a negative reactive relationship between the price and the amount of currency deflation. Therefore, in this scenario, I believe traders will either go short or not own ETH. will choose the option.
But he also said Arthur that a successful merge upgrade would lead to an increase in the price of ETH. he said:
“If the merger is successful… traders will buy ETH today, knowing that the higher the price, the more the network will be used and the more deflationary it is, the higher the price, which will lead to more network usage, and so forth. And onwards.”