In mid-August, ether managed to climb above the $2,000 area, but since then, the second-largest crypto currency by market capitalization has lost 23 percent in the past 14 days. Today, ethereum is the worst performing crypto among the ten largest coins, losing nearly 10% in 24 hours.
Market watchers say ethereum led the way up, now it’s leading the way down.
On July 14, Ethereum Beacon community manager Superphiz shared a timeline regarding Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS), and the unofficial timeline noted that the merge could take place on September 19. Since then, Ethereum’s value has jumped significantly, reaching $2,030 on August 14. In the meantime, Ethereum’s developers have clarified the date of the merge by setting the consensus layer change to the moment the total terminal difficulty (TTD) of the Ethereum network reaches 58750000000000000000000.
From that day to August 11, the USD value of ether remained high, but the price fell about three days later. The ETH value dropped to a low of $1,569 per unit on August 20, but managed to climb back above the $1,700 per unit range on August 25. On that day two days ago, Ethereum developers released an official timeline of the merger, called the “Mainnet Merger Announcement.“Since the official news broke, ether has slipped below the $1,700 area to $1,649 on Friday morning.
Jerome Powell’s speech in Jackson Hole on Friday caused an immediate drop in the equity and crypto-currency markets. Ethereum lost even more gains in Friday night’s trading sessions. ETH dropped to a low of $1,469 on Saturday, and support around ETH’s value increased. For now, it appears that ” the merger transaction ” doesn’t hold up as well as many thought it would to boost Ethereum’s stock.
Many observers explained last week that it was possible that the hype around the merger was over just after ETH hit $2,000. “[Ethereum] led the pump, now it’s leading the dump. If the traditional markets have a reversion after the relief rally, [The Merge] the craze is over [in my humble opinion] and [ethereum’s] the local summit is in place,” wrote CK on August 20.
Sold more ethereum today idgaf about your merge I’m 10xing my wife and kid’s quality of life
– ck (@stack__sats) August 14, 2022
“[Ethereum] Is going to have a big retraction after the merger hype is over,“another person commented on Twitter. On the other hand, a number of traders managed to cash in on gains when ETH hit $2,000 in mid-August, while one person unabashedly said he had no choice. wrote:
I sold more ethereum today, I don’t care about your meltdown, I’m increasing the quality of life for my wife and kids tenfold.
Eth is going to have a big retrace after the merge hype is over https://t.co/ebr8BinXUD
– Troyy68 (@Troyy68) August 15, 2022