Why ETH Dropped After Merge, Turns Out This Is the Reason!

Last week, the market crypto looks red. The market performance did not show any improvement even after the Merge Ethereum event which took place on Thursday 15 September 2022.

In the past week, Bitcoin's value has fallen from its concentration in the red, with a price of US$19,774.36 down 1.80 percent in the past day.

Ethereum (ETH) had to fall even further after the merger, dropping 8.73 percent to $1,472.80 in one day. Other altcoins also lacked heat, such as BNB, XRP, Solana (SOL) and Dogecoin (DOGE) everything is compact and stuck in the red zone in the last days.

So, why did ETH go down after the merge was done? Even though many traders and investors have hoped for a significant increase.

Why Did ETH Drop After Merge?

According to a report from Decrypt, crypto-analytics firm Glassnode has reported data on the exchange, which seems to indicate that there will be “good news” ahead of the Ethereum liquidity update.

The company says the merger has had a negative impact since July. However, traders are actively covering their positions, expecting the ETH price to fall after the merger. 

Additionally, according to trading firm QCP Capital, two critical macroeconomic events caused the ETH price to crash. This should establish a connection from the generator to the "burner" for the Ether coin.

The existence of some miners who do not like the move to proof-of-stake (PoS) and ETH forks also creates uncertainty in the eyes of investors.

The ETH fork was a kind of frustration for miners which gave the Ethereum PoW (ETHW) network a way to continue mining. 

In addition, QCP points to the macroeconomic impact that also affects the core of the crypto market, namely the aggressive attitude of the US central bank (Fed) which continues to raise interest rates. ' interest.

Obviously, that was the main reason for the fall of the crypto market, including the ETH price, against the previous ATH without being able to put up any resistance.

Also read: How the BNB Smart Chain Works, Fights the ETH Blokchain Hard!

About ETH

Ethereum is a crypto asset like Bitcoin in that it can be used in peer-to-peer transactions or traded on exchanges for free.

Ethereum has many applications beyond its use as a virtual currency, and many interesting projects are being built on the Ethereum network. 

Ethereum is not only a platform but also a programming language (fully Turing) that runs on the blockchain, enabling developers to build and publish distributed applications (DApps).

Applications that run on Ethereum run on the platform—specifically the cryptographic token, ether. In 2014, Ethereum started selling ether which got an overwhelming response.

Ether as a vehicle for migrating to the Ethereum platform is a coin that is often sought after by developers looking to build and run applications on Ethereum.

Also read: Advantages of The Merge Ethereum, Faster!

As additional information, VCGamers, which is the top up gaming center in Indonesia, has released a crypto token called VCG Tokens. You can buy it at Indodax and also BitMax.

To get updating VCG Tokens latest, you can visit VCNews.