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Ethereum price is down by around 10% after the successful Merge upgrade on the main net. Many experts think Merge was a ‘Sale the News’ event where investors entered the market to sell after this ‘Crypto Climax.’ In the last 24 hours, Bitcoin (runs on PoW consensus) has dropped only 2%, whereas Proof of Stake consensus-based Ethereum is down by around 10%, and DeFi Pulse Index (DPI) is down 6%.
Indeed, it is good news that Ethereum Merge has been completed successfully without any glitches, but it leads to selling pressure on ETH because of the speculators who entered the market only to get a higher return in the last two months. The market experts are hopeful that this change in consensus will make the network technically stronger with greater energy efficiency.
The Ethereum-based PoW chain is the result of this Merge, and the miners will get the same amount of ETHPoW as their holding on ETH. However, the price of ETHPoW has dropped significantly in the last 24 hours, which can also influence the price of ETH.
However, this speculation-based volatility will not last long, and the price will stabilize within a few weeks. The price of Ethereum has not broken its support level, so long-term investors should not worry about this sudden sell-off.
Besides that, in the USA, the latest CPI data also influence the stock market price and cryptocurrencies, so investors are selling because of the risk of inflation and moving their money to a safer asset.
Before investing in ETH long-term, click here and read our ETH predictions to help you make the right decision.
At the time of writing this post, Ethereum was trading around $1460, which is a support level of this coin. On the upper side, $1770 is resistance, and below $1400, there is strong support of around $1200.
So, the ETH token will consolidate within these levels. In the short term, there is a strong possibility that the price will reclaim the level of $1600, so you should not miss this buy position for a few days with a target set as per your investment goals.
On the weekly chart, ETH has formed higher lows and lower highs that signify a triangle-like pattern. Indeed, Ethereum will break the resistance in the long term, so we think it is an ideal time to accumulate ETH for the long term.
In the next two months, the speculator will sell their stakes, and the real investors will accumulate ETH, which will raise the price in the long term. As a retail investor, you should not sell out of panic but hold your positions because it has changed its basic core, making it an asset in the next few years.