The brief bull surge that took place before September 13 ended right before the Ethereum network joined with Beacon, which cemented the transition to the PoS consensus method and permanently altered the landscape of the cryptocurrency market. We did not witness a hard fork in which thousands of miners split off in different directions. Although there was not a catastrophic breakdown of the network’s underlying technology, it appears that investors did not notice anything that was particularly encouraging.
Ethereum has suffered a 15% loss over the past three days.
Almost the course of the first six hours after it was announced that the integration had been finished, the value of ETH dropped from $1650 to $1450, representing a loss of over 13%. Some financial analysts had high hopes that the price would self-correct, and the asset would climb back up to its previous monthly high, but the market proved them all wrong. There was no recovery in the price. At the time of this writing, it is precariously close to the $1400 support line, which came perilously close to being broken on September 16.
In the meantime, Bitcoin has maintained its position above the $19,000 threshold and has seen a gain of approximately 7% since September 16. It would appear that cryptocurrency investors are shifting their capital away from Ethereum in favor of Bitcoin as they view it as a more reliable bet.
It is too soon to make any predictions, but this particular speculation sounds plausible when taking into consideration that the merge was a hype mechanism that some Bulls used to generate buzz around ETH in advance of dumping large amounts on the market and crashing the price. Cardano is also making headway at this time as it readies itself for its own critically important Vasil upgrade.
Bitcoin is still the most widely recognized cryptocurrency in the industry. The flippening is most definitely an occurrence that we have no reason to anticipate. The anticipated price increase in ETH did not materialize, and sellers are currently dictating the trend.
Will Ethereum be able to recover in the immediate future?
A lot of people who are interested in ETH got their hopes up during the Bull Run in the middle of August, but their optimism didn’t last long. There is no doubt that ETH will not disappear, but the question of whether or not it will climb to its previous peaks is a separate one. The level of interest shown in Ethereum 2.0 by developers, users, and investors will determine a great deal.