The Ethereum Merge has come and gone, leaving market participants to wonder what will be the next big thing. As one expert noted in a Cointelegraph Twitter Space with Capriole Fund founder Charles Edwards, the market had been somewhat buoyed by the enthusiasm surrounding the Ethereum Merge and its strong price action. The crypto market has been declining since the event passed, with Bitcoin (BTC) trading below $20,000 and Ether (ETH) trading below $1,500.
New stories and market trends will emerge over time, and if the underlying conditions are favorable, traders will rebalance their portfolios when the new leaders occur. Let’s check out some possible tendencies.
Where will people who used to mine ETH go?
As a result of the successful transition to a proof-of-stake (PoS) model, miners on the Ethereum network are out of pocket but may still have their GPUs and ASICs. Some miners may switch to a new chain rather than liquidate their equipment.
They haven’t made a final decision yet, but it looks like Ravencoin, Flux, Ethereum Classic, and Ergo are in the lead. Each network’s hash rate reached a record high just before the Merge.
Ravencoin’s RVN price increased by 169% over the past month, while Ergo’s ERG price increased by 132%, Flux’s price increased by 156%, and Ethereum Classic’s price increased by 135% over the past 90 days.
On September 15th, both the hash rate and the price fell dramatically, and only Flux and RVN seem to be recovering as of this writing. It will be fascinating to observe which network miners choose and how this affects the coin’s price over the coming weeks and months.
Sell the news and buy the rumors, or buy the dip?
Although the current price of ETH is less bullish than Merge advocates and ETH bulls might have wanted, the actual move to PoS looks to have been successful, and hopefully, the benefits of PoS will eventually convert to bullish price action from ETH.
Ether may become deflationary in the future as a result of a supply shock. Staking not only increases network safety but also ensures a return on any funds placed. An unrelenting downward trend in the market may make it more appealing to seek out a reliable source of income.
In essence, it implies that the excitement around the Merge will need to die down before investors can start reaping the potential rewards of the PoS Ethereum network.
What’s up with Bitcoin?
This week, we look at Bitcoin. It is talked about how Bitcoin’s price hasn’t really changed much. Its price has been stuck in a range between $17,600 and $24,400 for the past three months. Since March 29, all rallies from range highs have been stopped by the 200-day moving average and an overhead resistance trendline that goes back to Bitcoin’s all-time high of $69,400 in November 2021.
Although a continuation of the present trading range is likely to be beneficial for cryptocurrencies, macro concerns may continue to weigh on crypto and equity markets. An even more pronounced ripple impact on cryptocurrency prices is possible if the hot consumer price index data from September 12 prompts the United States Federal Reserve to implement more aggressive rate hikes.
Investors are still wary of most cryptocurrencies, which might lead to a collapse below the yearly swing low if the price keeps getting rejected at the long-term declining trendline and keeps trying to retest the $19,000 support.
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