Ethereum Merge is a success but the price drops below $1,600
Analysis and predictions

Ethereum Merge is a success but the price drops below $1,600. Why?

The Ethereum blockchain is successfully moving to Proof-of-stake this morning in a merger transaction dubbed “The Merge.” Hours after the long-awaited event, the price of Ethereum dropped below $1,600. Bitcoin also fell during today’s session, with the token falling below $20,000.

Since November 2021, Ethereum has been trending lower and has had difficulty finding support above the 20-day moving average on the weekly timeframe.

A number of analysts are considering that Ethereum would have bottomed out on June 18 with a price of only $882. This is an 81.67% correction compared to its all-time high of $4,871 and dated November 10, 2021 according to figures from the Coinbase platform.

Among the more resilient investors, it should be noted that those who were able to obtain Ethereum at a price of $882 are still up 80% today, despite the continued depreciation sentiment in the cryptocurrency market.

Uncertainty increases over what the merge event will mean

Bitcoin fell below $20,000 on Thursday as sentiment surrounding cryptos remains bearish. Following U.S. inflation data earlier this week, crypto-currency markets were hit by a red wave, with bitcoin falling more than $2,500 so far this week.

The world’s attention was on The Merge today. Despite this, ETH fell to an intraday low of $1,572.60, as the markets seem to have already priced in the move.

Many now believe that the bears will attempt to send prices lower, with some expecting a floor of $1,550 to be the expected exit target.

Overall, volatility levels will rise during this period as uncertainty increases over what the merge event will mean for ethereum’s value going forward.

As long as the U.S. central bank continues to crack down on inflation, the altcoin market will suffer, with Ethereum on the front lines. And now that The Merge has passed, we are momentarily seeing prices move away from $1700, one of the major levels of the last bullrun. This would pave the way for a downward catch-up with Bitcoin. Hence the importance of keeping the $1400 support afloat in the immediate future to avoid this potential scenario.

At the time of writing, Ethereum price is $1,488.59 USD with a 24-hour trading volume of $27,424,850,881 USD. Ethereum is down 6.67% in the last 24 hours with a live market cap of $182,172,657,533 USD. It has a circulating supply of 122,379,467 ETH coins.

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