As expected, Ethereum has been doing poorly since the much-vaunted Merge event. It was a revolutionary moment for the crypto industry.
Although the merger was planned to boost investor confidence, it came at the worst possible time.
The merger took place at an interesting time in crypto history. The update was released on September 15, just two days after the CPI data was released in the United States.
There was a sell-off in the stock markets as the Federal Reserve raised interest rates, reporting its annual inflation rate hike of 0.1% and affecting the crypto market. currencies.
On the day of publication, Bitcoin fell by 12.71% and Ethereum by 12.67%. The timing of the merger launch was a last-ditch effort to maintain or perhaps boost investor confidence. However, that didn’t actually happen.
Ethereum (ETH) price down 21%
When all was said and done, the price of Ether had fallen 21.1% from its 7-day moving average, as measured by CoinGecko. But @CryptoGucci, a Twitter user, disputes this.
A Twitter user explained why the recent price drop shouldn’t be cause for concern. The growing prevalence of Ethereum validators on the blockchain is a prime example.
This increase in validators can improve the overall efficiency of the Ethereum blockchain.
Additionally, the state of Colorado has accepted ETH as a payment method through PayPal. However, this payment method is exclusive to personal, non-commercial PayPal accounts. Nevertheless, it will undoubtedly make it easier to adopt the ETH ecosystem.
Is an ETH recovery imminent?
Recent data indicates that ETH is experiencing a positive price increase. After a near fall to $1,243, the price rebounded and is currently trading between $1,221 and $1,323.
Several indicators also depict a strengthening bullish momentum. Since the drop to the critical support level, Stochastic Relative Strength Index (RSI) values have risen, indicating that investor confidence is rebounding after a terrible few days.
But are the new changes enough to halt the current 0.75% rise in interest rates? As the cryptocurrency market closely mirrors the broader financial environment, recent moves may be temporary.
Wall Street indices are down a few percentage points at the time of this writing, and this drop can have a significant impact on the cryptocurrency market. As the fiscal third quarter draws to a close, Ethereum may experience a slow but gradual comeback.
ETH total market cap at $163.7 billion on the daily chart | Source: TradingView.com Featured image from CryptoMode, Chart: TradingView.com
(The analysis represents the author's personal views and should not be construed as investment advice).