Ethereum trading volume is sluggish and it is influencing the price of the cryptocurrency. The price struggles below $1,600.
Many people are looking forward to The Merge, a huge event in the cryptocurrency sector. By merging with the Beacon Chain, Ethereum will develop a proof-of-stake mechanism. Ether’s energy usage will be greatly reduced as a result of this technology.
Despite the Merge’s assurances of a better vision for Ethereum, investors remain skeptical of the currency. On August 28, the price of ETH fell dramatically below the $1,500 support line and has remained there for the past two days.
Traders’ expectations are relatively low. According to a source, trade volumes fell by 45 percent on August 28. Transactions suffered a significant setback as total trading fell.
Ethereum is now trading at $1,580, down 1.7% in the previous seven days. The price is affected because Ethereum trading volume is sluggish.
ETH Trading Volume – Slug-Like
The average monthly number of seven-day Ethereum transactions has dropped to 42,490. This represents the current anxieties and viewpoints of global traders. One of the deal-breakers for businesses is a lower coin price.
Other coin values have recovered from recent drops. At best, the most notable are Polygon and Cardano.
Perpetual Futures Contract volume fell to an all-time low as investor confidence and excitement fell coupled with a fall in network and transaction activity.
On August 28, the currency hit a three-month low on the Perpetual Futures market, according to Glassnode. This was the consequence of the first credit crisis in cryptocurrency history, which happened in June 2022.
Recent events, such as the Terra implosion and Federal Reserve Chair James Powell’s recent address, can also be attributed to the current price of Ethereum.
Crypto Braces For Merge
The broader financial markets reacted negatively to the speech. The main stock markets had 1% to 2% falls. Both Bitcoin and Ethereum experienced large selloffs, according to Coinglass statistics.
With the merger taking place in around 15 days, both pro and negative remarks have been made. Some are quite optimistic about what the merger will bring to Ethereum, while others are extremely skeptical of its ostensibly positive effects on the cryptocurrency.
Meanwhile, given the current volatility of the crypto market, speculation is limited. Uncertainty lingers over whether the merger will result in a prosperous future for Ethereum or a downward spiral that will cause millions of people to suffer.
We can only hope that the pairing will help the incredibly fragile alternative cryptocurrency.
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