American news outlet TIME has taken a closer look at how Ethereum (ETH) has been performing as an asset since the Merge update completed on Sept.
Koinfinans.com As we reported earlier, on September 15, Ethereum completed the Merge update, which changed the consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS).
And we finalized!
Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.
— vitalik.eth (@VitalikButerin) September 15, 2022
However, the leading altcoin rose as high as $1,644 on the Bitstamp exchange on Merge day (September 15), and ETH’s intraday high was $1,376 on September 19, when the TIME article was published. This represents a decrease of about 16.3%. Currently (as of September 26), ETH is trading around $1,311.
On September 19, TIME published an article titled “Why Ethereum Dropped After Merge”. The article explained the drop in ETH price as follows:
- “Merge has not fixed Ethereum’s high fees or congestion. Instead, it laid the foundation for infrastructure that could solve its problems for years to come. Those who hoped that Ethereum would look or work completely differently on Thursday were disappointed.”
- “Even though crypto is designed to extract value independent of the exchange, the two are still very intertwined. Over the last few years, tokens like Bitcoin and ETH have risen and fallen in conjunction with larger market trends. This year, Ethereum prices have come under pressure since the Federal Reserve announced its intention to launch a series of aggressive rate hikes to combat inflation.”
- “…last Thursday, SEC Chairman Gary Gensler said that a token using Proof of Stake could pass the Howey Test… Given Ethereum’s move to Proof of Stake, many investors on social media were convinced that Ethereum would be Gensler’s next He expressed concern that he might be a target.”
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.