Ethereum (ETH) Falls To Two-Month Low Post-Merge – Why Is Crypto Crashing?

The long-awaited Ethereum merge finally happened on September 15th, migrating the network to a Proof of Stake consensus algorithm. However, ETH bulls are still awaiting the flipping event the merge was predicted to bring. 

Ethereum (ETH) Drops 25% Post Merge

Over the last 24 hours, ETH has dropped in value by 11%, which represents the heaviest loss among the top 10 ranked cryptos. Ether has lost 26% of its value in the last 7 days to trade at $1,295—its lowest point since mid-July. 

ETH graph coinmarketcap ethereum crypto

The 24 hour price chart for Ethereum (ETH). Source: CoinMarketCap

Ethereum (ETH) is on route to form its fourth straight red candlestick on the daily timeframe since the beginning of the merge. Since then, the price of ETH has fallen from a high of $1,648 to as low as $1,287. 

ETH graph coinmarketcap ethereum crypto

The 7 day price chart for Ethereum (ETH). Source: CoinMarketCap

Why Is Crypto Crashing?

Ethereum’s price drop is not a solitary affair, and its woes are being shared by Bitcoin and other Altcoins in the market. In the last 24 hours, the global crypto market cap has dipped 5.6%, and is barely holding out above the $900 billion mark. 

The crypto market crash, which has taken a great toll on the price of ETH is a direct result of the macroeconomic conditions at play, as the date of Ethereum’s merge coincided with August’s CPI report. 

Today’s market crash precedes fears of the U.S. Federal Reserve announcing its biggest rate hike in 40 years. The stock market has not been spared from the market crash either, with Nasdaq and Dow Jones down 5% from last week.

On the Flipside

  • One of Ethereum’s forks, EthereumPoW (ETHW) has lost more than 90% since the merge.
  • EthereumPoW’s woes worsened after it suffered a ‘replay’ exploit, leading to more than 200 ETHW being stolen within days of its launch.
ETH graph coinmarketcap ethereum crypto

The 3 day price chart for EthereumPoW (ETHW). Source: CoinMarketCap

Why You Should Care

The Ethereum crash is inextricably tied to macroeconomic factors, which have affected not only the crypto industry, but the global markets.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).