Just a day after the Ethereum merge, Ethereum dropped by 8.56% after the initial growth up to the $1600 level on merge day. The crypto market remains muted while the Bitcoin levels remained below $20,000 for the third consecutive day. Cryptocurrency prices today is stunning everyone by showing some steep movements.
The global cryptocurrency went down by 2.78% to $959.1. At the same time, the trading volume went up by 6.05% to $83.34 billion. It is always a typical scenario; the trading volume increases whenever the market goes down.
The top gainer coin was Golem, which rose by 9.77% to $0.332, while the leading losing currency was Ravencoin, which fell by 15.3% to $0.05429. The most trending coin was Ethereum because of the merger, and people are continuously focusing on Ethereum and how it is responding.
Ethereum has dropped approx 15%, and bitcoin dropped around 3% after the most anticipated topic, the Ethereum merge. Ethereum network transitioned from the proof of work to the proof of stake consensus algorithm.
This merge is designed to improve network efficiency and decrease energy consumption.
As a result, analysts believe the merger will have a long-term effect on Ethereum today and other cryptocurrency prices.
How Ethereum merge is not in the market’s favor?
After the Ethereum merge, cryptocurrencies face severe losses, including Bitcoin, Ethereum, and Solana. Bitcoin, one of the biggest cryptocurrencies with a $382 billion market capitalization, dropped approximately 7.9% in the past Week. It is trading around $19,990, declining approx 1.6% in the past 24 hours as per coin market cap data.
Bitcoin was in range bound state this Week, trading around a high of $21,804.91 and a low of $19,600.79.bearish market of this Week puts bitcoin down by 1.07% from all-time high of $68,789.63 in November, according to coinmarket cap data.
As per data coin glass, $166.42 million worth of Bitcoin long trades were liquidated last Week. In addition, the short position of the Bitcoin, worth approx $85.37, also liquidated at the same time.
Why is Ethereum Dropping After the Merge?
The last few weeks were a victorious juncture for Ethereum amid the highly awaited Ethereum merge– world’s largest cryptocurrency, Ethereum, has transitioned from proof of work to proof of stake consensus mechanism after an 8-year meticulous development process.
The merger would increase the network efficiency and control the power, according to the Ethereum Foundation.
Merge was one of the hotly anticipated topics in the crypto industry, which is finally completed. According to the Ethereum Foundation, Pos will cut energy usage approx 99.05 %.
However, the prices of cryptos are regularly falling after the upgrade. That’s why many people question why the merge, which happened to fix the network’s problem, is drowning the value of Ethereum.
Marketers believe Ethereum has fallen prey to rumors to buy on sell news. Khaleelulla Baig, the founder of Koinbasket, said that Ethereum sees a constant decline as the US government signaled to treat it as a security instead of a commodity. Thereby the coin is affected by creating fear and uncertainty of tax implications.
Meanwhile, the platform also became less decentralized after the switch from proof of work to proof of stake said the CEO and founder of HelperWorld. Ethereum merge could make hackers easily exploit the platform. The merger was designed to have a long-term impact, not a short-term one.
While the Ethereum merge is designed to solve the problem of the Ethereum ecosystem, the price of Crypto has constantly been falling after the merge. Many developers claim that the project will be helpful in the long run.
The merger did not solve the issue of Ethereum’s extensive scalability and high transaction fees. Talking about Ethereum, prices have fallen more than bitcoin after its significant upgrade called “the merge.”
Key Takeaways:
- Ethereum is one of the top blockchains that allows users to build apps on the top of the chain.
- Ether is the native currency of the Ethereum network.
- The merge Ethereum is an update to shift its mechanism from Pow to Pos.
Despite the Ethereum merger, ether coins have fallen more than bitcoin. Since the upgrade on 15 Sept, ether is down 15.2%. Bitcoin dropped 4.4% during the same period.
Cryptocurrency Prices
Bitcoin also goes down by 1.68% to $19735.42. Bitcoin was running between $19,700 to $20,300 levels and was on gain till 1 pm. But in the evening, after 7:54, the market started crashing down, reaching $19,600 from $20,200. The lowest price of Bitcoin was $19,625.22.
After the merge event on 15 Sept, around 12:16 pm, the price of Ethereum crossed $1600 levels and was trading with gains too. But around 3:49 pm, the cost of Ethereum crossed down to red territory, but later in the evening, Ethereum came under severe pressure, and the price went from $1585 to $1483 levels within just 40 minutes.
The lowest price of Ethereum remained at $1456.90 while its trading volume rose by 34.44% to $25,880,886,943.
Other Altcoins
The price of Solana also went down by 0.36% and reached $33.47, while Ripple fell by 3.49% to $0.3245, but its 24-hour trading volume went up 20.82% to $1,487,549,823.
Cardano fell by 0.81% and reached $0,4664, where its 24-hour trading volume went up by 11.07% to $659,855,150. Binance declined by 1.23% to $272.51, whereas its 24-hour trading volume went up by 6.43% to $1,036,277,189.
Meme Coins
Dogecoin was down by 1.81% at $0.05891, and its trading volume went down by 10.29% to $327,339,893.
Shiba Inu goes down by 3.42% at $0.00001163.
FAQs
Q. Is it the right time to buy Ethereum?
Ans. Cryptocurrencies are high-volatile; we never know what happens next. Though the Ethereum price is down, it can soon recover and look forward to significant gains.
Q. Will Crypto recover in 2023?
Ans. Analysts believe that the crypto market will recover in 2023. Crypto exchange Bitbank projects that cryptocurrency prices will heal and experience a bull market in the second half of 2023. In other words, investors can look for significant gains in the second of the year.
Q. How many Ethereum are left?
Ans. There is a wide range of cryptocurrencies available there. However, Ethereum has a limited supply. As of January 2023, there were 113.5 million Ethereum tokens in circulation.
Q. How many years does a bull market last?
Ans. The average duration of the last bull market is approx 3.8 years. However, it can also vary depending on the market scenario.
Q. Will Crypto still be around in 2030?
Ans. Despite what is happening now, Crypto must be addressed in the long-term investment option. They are constantly rising. Analysts estimate that the global crypto market will be triple what it is now.
Conclusion
Although the merger didn’t bring any positive growth index in cryptocurrency prices today, it can be seen as a long-term player in the crypto space. Ethereum is the world’s second cryptocurrency by market capitalization, and it is expected to boost Ethereum’s growth.
Therefore, it can provide numerous benefits to the Ethereum network and investors. However, it will be interesting to see how the upgrade will impact the network’s long term.
