With just over two weeks left until The Merge, ethereum’s value against the U.S. dollar has lost all the gains the crypto asset recorded leading up to the hardened date. In mid-August, ether managed to climb above the $2K zone but since then, the second largest cryptocurrency by market cap lost 23% over the past 14 days. Today, ethereum is the worst performing crypto out of the top ten largest coins, shedding close to 10% in 24 hours.
Market Observers Say ‘Ethereum Led the Pump, Now It Leads the Dump’
On July 14, Ethereum Beacon chain community director Superphiz shared a pencilled-in timeline concerning Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), and the unofficial timeline noted The Merge could happen on September 19. Since this date, ethereum’s USD value jumped significantly, reaching $2,030 per unit on August 14. In between that timeframe, Ethereum developers hardened The Merge date by setting the consensus layer shift to when Ethereum network’s Total Terminal Difficulty (TTD) hits 58750000000000000000000.
From that day on August 11, ether’s USD value remained high, but the price fell approximately three days later. ETH‘s value tumbled down 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 published an official timeline for The Merge called the “Mainnet Merge Announcement.” Since the official news dropped, ether slipped below the $1,700 zone to $1,649 by Friday morning (EST).
Jerome Powell’s Jackson Hole speech on Friday caused an immediate downturn in equity and cryptocurrency markets, and ETH shed even more gains during Friday evening’s trading sessions (EST). ETH‘s U.S. dollar value dropped to a low of $1,469 per ether on Saturday, August 27, 2022, and support around the $1,500 per unit range has formed. For now, it seems ‘The Merge trade’ is not holding up as well as many thought it would, and it very well could have been a ‘sell the news‘ event.
Many observers explained last week that it was possible The Merge hype was over right after ETH reached $2K per unit. “[Ethereum] was the pump; now it is the dump. If traditional markets get a reversion after the relief rally, [The Merge] hype is over [in my humble opinion] and [ethereum’s] local top is in,” one individual wrote on social media on August 20.
“[Ethereum] is going to have a big retrace after the merge hype is over,” another person commented on Twitter. Furthermore, a number of traders managed to cash in gains when ETH reached $2K in mid-August, as one person unapologetically wrote:
Sold more ethereum today, idgaf about your merge, I’m 10xing my wife and kid’s quality of life.
What do you think about The Merge hype being erased from crypto market valuations? Please comment below to let us know your thoughts on this topic.
Jamie Redman
Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.
Ethereum’s Next Big Move: 3 Bullish Signals That Could Skyrocket ETH
TL;DR
Although ETH has been largely the biggest disappointment of the current cycle that started last year, there are certain factors suggesting it has a lot of room for growth, which could be around the corner.
Whales are back on the offensive, and the declining sentiment could result in price reversal in the short term.
3 Factors Say Yey ETH
Data from Lookonchain suggests that Ethereum whales have reversed their strategy and have started to accumulate once again. The analytics platform outlined an address linked to Metalpha that has purchased roughly $50 million worth of the second-largest digital asset since April 1.
Another one withdrew almost $100 million in ETH out of GateIo, and a third one transferred more than 10,000 ETH from Bybit.
Whales accumulating again is a good sign for the underlying asset, as it reduces the immediate selling pressure and could lead to FOMO among smaller investors.
The second positive sign for ETH’s future price performance is the Market Cap to Realized Cap (MVRV) Price Band. The metric is used to determine the “best” buying opportunities when Ethereum dips below it, which is the current situation.
The best #Ethereum$ETH buying opportunities have historically occurred when price dips below the lower MVRV Price Band, and that’s exactly where it is now! pic.twitter.com/qVg9R2ewpe
Rain told their 100,000 followers on X that Ethereum’s cycles tend to repeat themselves in a compelling manner. Basing their findings on the historical sentiment around the largest altcoins, the analyst determined that ETH will reclaim its strength and aim at $10,000 and beyond. This will shift the entire market structure, which includes “new narratives, new capital rotation, and new leaders.”
Is It Already Different?
Just a few days ago, CryptoPotatoreported that different types of investors had sold off substantial portions of their ETH holdings. These included whales, Galaxy Digital, smaller investors, and those who entered through the ETFs.
However, the information above, including the accumulation by whales, suggests that the ETH market has reached an exhaustion point. After all, the asset is down by 60% since its December 2024 peak. For comparison, BTC, which actually managed to break its previous ATH, is down by only 22% since the January high.
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Ethereum Price Stalls as Lightchain AI Launches Developer Grant Program
This content is provided by a sponsor. PRESS RELEASE. Ethereum prices have remained relatively flat, causing crypto investors to shift their gaze to new opportunities poised to disrupt the blockchain landscape. One such opportunity making waves is the Lightchain AI Developer Grant Program. With its unique focus on integrating artificial intelligence (AI) with blockchain technology… Read More
Crypto Price Analysis April-18: ETH, XRP, ADA, SOL, and HYPE
This week, we examine Ethereum, Ripple, Cardano, Solana, and Hype in greater detail.
Ethereum (ETH)
It was a quiet week for Ethereum that only managed a small 1% price increase. This is because, lately, it has been moving sideways around $1,600. This lack of momentum shows indecision with market participants unsure if the ETH downtrend will resume or not.
The current price action is similar to early March, when Ethereum hovered around $1,900 for about a week before sellers returned. If nothing changes, ETH may fall to its key support at $1,400.
Looking ahead, this cryptocurrency continues to show weakness. The lack of momentum is concerning, and buyers have to break the resistance at $1,800 to bring back optimism.
Chart by TradingView
Ripple (XRP)
This week, XRP managed to defend its key support at $2 and booked a 2% price increase. This is a positive sign that shows buyers are serious about keeping this cryptocurrency above $2.
While the bullish momentum is not there yet, the current price level can serve as a great pivot point for higher levels in the future, with $2.3 and $2.6 as key targets before the major resistance at $3.
Looking ahead, XRP has a good chance to return on a sustained uptrend in the medium term and aim for $3. To achieve that, buy volume has to increase considerably in the future.
Chart by TradingView
Cardano (ADA)
While XRP has found good support, the same cannot be said about ADA. It failed to reclaim its previous support at $0.64, which is now acting as a resistance, with sellers having an advantage on the chart.
If buyers remain absent, then the next key support levels will be found at $0.5 and $0.45. While the daily MACD turned bullish, the buy volume is simply not there to challenge the resistance at $0.64.
Looking ahead, Cardano is found in a flat trend with buyers unable to make their presence felt. For this reason, it is unlikely to see any major moves from this cryptocurrency at this time.
Chart by TradingView
Solana (SOL)
Solana increased by 13% this week, making it the best performer on our list. This comes after the price broke above $118, which used to act as resistance.
This uptrend may continue uninterrupted until $150 where sellers returned in the past, most recently in late March. While the path is clear for higher levels, buyers will need to turn $150 into a key support if they want to sustain this rally.
Looking ahead, SOL is experiencing a relief rally after its most recent drop. While sellers are absent right now, they can return once the price approaches the key resistance at $150. Best to be cautious there.
Chart by TradingView
HYPE is the second-best performer on our list this week with a 10% price increase. This comes after it entered a sustained rally since touching $9. Considering it reached $17 recently, that means it jumped by over 80% within a relatively short period of time.
While its rally in early April was quite strong, sellers have started to make their presence felt more in the past week with each new high being met by increased sell pressure. This can also be seen on the daily sell volume which is making higher highs.
Looking ahead, HYPE had a fantastic run, but this is starting to show some weakness with buyers becoming exhausted. This is why a pullback becomes more likely at these levels since sellers are returning.
Chart by TradingView
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.