ETH price has had a sharp drop after The Merge. It at one point declined to $1,446, down 12.6% from the peak of $1,655 it reached earlier. This was ETH’s lowest price since August 28, failing to keep the bullish momentum gained thanks to The Merge.
The Merge has been completed, investors have no motivation to hold ETH because the upgrade will not bring significant changes to Ethereum in the near future. The next milestone is 6-12 months after The Merge as the Shanghai upgrade happens and ETH staked in ETH 2.0 deposit contact will be unlocked.
Moreover, the information that SEC Chairman Gary Gensler said proof-of-stake cryptocurrencies could qualify as securities also made investors concerned about the future of ETH.
At the end of September 15, Bitcoin also at one point dropped to $19,497, the lowest level since September 9. In the near future, the market’s attention will focus on the next Fed interest rate hike on September 22. The US CPI in August was 8.3%, a mild slowdown from the 8.5% reported for July. However, analysts had forecasted a 8.1% increase so the number was still higher than expectations. Because the CPI is still running hot, it is likely that the Fed will raise rates by another 0.75 percentage point.
Other cryptocurrencies using the same mining algorithm with Ethereum that surged before The Merge like Ethereum Classic (ETC), Ravencoin (RVN) and Beam (BEAM) also plummeted. The remaining large-cap cryptocurrencies had a slight drop over the past 24 hours but only dumped 2-5%, lower than Ethereum.
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