Ethereum Price Drop

Do you know that what Caused the Ethereum Price Drop to Be “Short Term Noise” and “Fear, Uncertainty, and Doubt”? Here we discuss the possibility that might help you.

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The price of Ethereum has continued to fall since the merging. Nearly the past week, ETH has lost over 25% of its value. Almost the past 24 hours, the price of ETH has dropped by over 10%, from over $1,400 to under $1,300. Bitcoin and Litecoin are also suffering from this slowness, but Ethereum is taking the worst hit. Price drops of almost 6% in the past 24 hours have caused Bitcoin to drop below the $19,000 mark. However, a cryptocurrency specialist claims that the recent dip in Ethereum’s price is just hype.

However, in the days after the integration, the ETH/BTC ratio has dropped by nearly to 15%. Despite Bitcoin’s lowest dominance in years, this held true.

Why the Recent Ethereum Price Crash Is Predicted

Market movements in Ethereum’s price are “short-term noise,” according to prominent cryptocurrency and Ethereum investor @VivekVentures. He thinks Bitcoin maximalists are causing unnecessary anxiety about Ethereum and the merge by circulating false information. Since Ethereum’s merging, Vivek explains, the number of new coins being issued has dropped by 95%. If Ethereum wants to maintain the same level of security while issuing 95% less tokens, it will have to release fewer tokens.

Ethereum released fewer than 3,000 tokens in the three days following the unification. More than 40,000 tokens might have been generated had it been run in Proof-of-work mode.

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Vivek elaborates further on how the change in consensus method after the merge affects the selling pressure. Less people are interested in the Proof-of-stake approach now than in the proof-of-work model. For a period of six months to a year, Ethereum validators are restricted from selling their block rewards. Therefore, there is very little selling pressure on Ethereum at the moment.

Alternatively, if the price of ETH stays at $1400 throughout the PoW era, the total selling pressure will be $7 billion. As Vivek also demonstrates, Ethereum’s gas expenses are currently over 15 gwei. This deflationary effect of the merge generates demand for Ethereum.

Bitcoin Vs. Ethereum Narrative War

Since the two networks were combined, there has been a public relations battle between Bitcoin and Ethereum supporters. The Bitcoin community, according to Twitter’s Jack Dorsey, must brace for a “narrative war.” The Proof-of-work mechanism currently used by Bitcoin has been criticised for its excessive energy consumption.

Conversely, there may be centralization concerns with Ethereum’s Proof-of-stake.

Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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