The Cryptocurrency Market Takes Another Hit As Merge Hype Is Unable To Save It From Crash
The Ethereum merge hype is in full swing, as most validators and miners have already prepared their tools and software for one of the biggest updates in the history of the network and the cryptocurrency industry. Despite its importance, traders and investors are pushing the price of Ethereum to a critical level.
Ethereum in danger of breaking support
Despite all the hype and positives, market conditions remain grim for Ethereum as the market’s second largest asset has lost growth momentum and is now trading right at the trendline support level, which if broken will give investors ETH puts you at risk of seeing. $1,000.
The lack of a support level below the trendline is the main problem for the market right now, as the cryptocurrency has no chance of building any kind of foundation that will help it bounce back quickly.
Despite the problematic nature of Ethereum’s current position on the market, the asset still outperforms almost every major cryptocurrency. According to the trading history of Bitcoin and Ether, the latter beat the former by more than 10 times, with 72% from 2022 lows against 7% for BTC.
The merge update is expected to go live around September 13, coinciding with the CPI data release, another strong volatility source for the cryptocurrency and financial markets. In case of a successful update, we may see price performance in line with the second largest cryptocurrency in the market.
bitcoin is taking a hit
As we mentioned in our previous market review, bitcoin was poised for another downside given the lack of growth factors and the tension coming from the CPI data release and the FOMC meeting.
Since yesterday, bitcoin has lost more than 5% of its value, returning to levels not seen since mid-July. Such an unpleasant turn of events confirms that the market is still in a downtrend and has yet to get out of it.
It is expected that we will see a recovery after at least one of the above events brings some relief to the market, which is reflected in moderated inflation or unexpectedly low rate hikes that lead to the reversal of the US dollar. will form.
Altcoins showing mixed dynamics
According to the heatmap of the cryptocurrency market, almost every sector, including alternative coins and tokens, remains extremely red. But if we take a closer look at each pair in the market, it becomes clear that most of the assets are not losing that much of their value and show neutral performance over the past 24 hours.
For example, Cardano is losing just 0.02% against USD and up 0.37% against BTC. Aside from neutrality, ADA is showing all signs of a reversal: “Hammer” candlestick pattern, descending volume during a downtrend.
Mematocoins and coins such as Dogecoin and Shiba Inu are also showing a slight increase over the past 24 hours, despite yesterday’s decline. The market seems to be avoiding a panic sell-off, as we saw in May or early June.
The main reasons behind the relative calmness of the market could be tied to the lack of liquidity and participants leaving the digital asset after bitcoin fell below its 2017 ATH.