What Ethereum Can Bring On The Table For ETH Investors In Q4
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As expected, Ethereum has been doing poorly since the much publicized Merge event. This was a groundbreaking moment for the crypto industry.
Although the merger was expected to boost investor confidence, it came at the worst possible time.
The merger came at an interesting point in crypto history. The update came on September 15 – just two days after the US CPI data was released.
There was a broad sell-off in the stock market as the Federal Reserve raised interest rates, reported a 0.1% annual increase in inflation and impacted the cryptocurrency market.
On the day of publication, Bitcoin fell 12.71 percent and Ethereum fell 12.67 percent. The timing of the merger announcement was a last-ditch effort to maintain, or perhaps strengthen, investor confidence. However, that didn’t actually happen.
Ethereum (ETH) price down 21%
When all was said and done, the price of Ether was down 21.1% compared to its 7-day moving average as measured by CoinGecko. But @CryptoGucci, a Twitter user, denies this.
One Twitter user explained why the recent drop in prices shouldn’t be a cause for concern. The proliferation of Ethereum validators on the blockchain is a good example.
This increase in the number of validators can improve the overall efficiency of the Ethereum blockchain.
Additionally, the state of Colorado has accepted ETH as a payment method through PayPal. However, this payment method is only for personal PayPal accounts, not commercial accounts. Nevertheless, this will undoubtedly help in the adoption of the ETH ecosystem.
Is the ETH recovery imminent?
Recent data shows that ETH is witnessing a positive price increase. After a near freefall to $1,243, the price has recovered and is currently trading between $1,221 and $1,323.
Several indicators also describe a strengthening rate of increase. After the Stochastic Relative Strength Index (RSI) dropped to a critical support level, values have risen, indicating that investor confidence is recovering after a terrible few days.
But will the new changes be enough to stop the current 0.75 percent rate hike? As the cryptocurrency market closely mirrors the broader financial environment, recent movements may be temporary.
Wall Street indexes are down a few percentage points at the time of writing, and this drop could have a significant impact on the cryptocurrency market. As the third fiscal quarter draws to a close, Ethereum may experience a slow but gradual comeback.
ETH total market cap at $163.7 billion on the daily chart | Source: TradingView.com Featured image from CryptoMode, Chart: TradingView.com
(The analysis represents the author's personal views and should not be construed as investment advice).