The 2nd-largest crypto in the world, Ethereum (ETH), saw a significant drop shortly after the Merge went live on Thursday, September 15. At the time of writing, Ethereum (ETH) seems to have a market worth of $178 billion and is moving at around $1,460. The ETH Merge is proving to be precisely the sell-the-news occurrence that many in the cryptocurrency world had predicted. The Merge enthusiasm is already over, and Ethereum currently lacks a short-term stimulus. A small amount of movement returning into Bitcoin would’ve been reasonable to anticipate. Since July 2022, Ether (ETH) has outperformed the recovering marketplace. Of course, the excitement around the Merge was a major driver of the price increase.
The ETH/BTC ratio increased to 0.078, a value previously seen on January 7, prolonging the most current bullish breakthrough.
The change occurred at 01:45 UTC, when Goerli, one of the biggest and busiest Ethereum test networks, transitioned from the proof-of-work consensus to a proof-of-stake agreement.
The Merge, which joined Ethereum’s existing proof-of-work chain with the proof-of-stake Beacon Chain, significantly reduced the amount of ether and made it more appealing as a store of value than bitcoin, as predicted by analysts.
Perhaps the Merge has filled the hole in the positive narrative, calming the market hammered by the aggressive interest rate increases made by the U.S. Federal Reserve.
However, global fundamentals appear to have a bigger impact on ETH and the larger cryptocurrency market.
The cryptocurrency market had a swift fall as soon as the U.S. Price growth came in at 8.3%, higher than anticipated. In advance of this month’s Fed meeting, the U.S. share market has also exhibited selling pressure symptoms. The Fed may announce a rate increase of 100 basis points, as expected by the market, to rein in the rising inflation.
The Merge deployment on Thursday was a success, but it also bodes better for the Ethereum community’s future. The ETH blockchain will be upgraded to become more effective, speedy, and accessible.
But this is just the start of the Ethereum Proof-of-work and Beacon Chain integration. To implement Sharding and reach the intended outcome, more work remains.
Without a doubt, the Merge event was a great success. Over time, we’ll be able to tell if the metrics are still accurate. The proof-of-stake transition has made it possible to upgrade to new levels.