ETH Suffers Over $15 Million Loss, Dropping 10% Against BTC

Economic variables and authoritarianism issues exert pressure on the after-merge Ethereum price. The merging of Ethereum, scheduled to occur on the 15th of September 2022, happens to be an event that will continue as it turns out to be a “buy the rumor, sell the news” event. 

After the merge, it was observed that ETH (Ether) dropped significantly versus BTC (Bitcoin) after the merge occurred. On the 22nd of September 2022, the Ethereum-Bitcoin and Ethereum-USD pairings dropped by 17% and 20%, respectively. These dropping occurred after Ethereum moved from Proof of Power (PoW) to PoS (Proof of Stake)

What’s Consuming The Bulls Of Ethereum

Several factors contributed to the recent plummeting of Ethereum at the mentioned time. The first event was the falling of Ethereum against the United States Dollar, which seems to be connected to a dropping of the same sort at other places in the cryptocurrency marketplace. These declines were believed to be triggered by the jack-up of the rate of the 75 bps (base points) of the reserves belonging to the Federal. 

Furthermore, Ethereum encountered several criticisms for becoming over-centralized after the merging operation. As if now, just five institutions delivered blocks, about 60 per cent of the total blocks required. An Ethereum staking service, Lido DAO owns the most significant share with Ether deposits of over 4 million, equivalent to more than 30 per cent of the total Ethereum stakings involved in the official Proof of Stake Smart contract of Ethereum.

Also, smart money or institutional investors reduced the exposure of the Ethereum-based investment moves. According to reports, on the 16th of September 2022, Ethereum’s funding capital experienced an outward swim of cash of over $15 million. On the contrary, in the same week, Bitcoin-centered investments increased by over 17 million, suggesting that it was a migration operation. 

Ethereum-Bitcoin Experts Suggest An Approaching 10% Drop

These factors, along with Ether’s technical analysis compared to Bitcoin, create a bearish situation. ETH/BTC decreased by about 25% when closely monitored for three days and placed on a chart. On the charts, it peaked at 0.085 BTC, which also happens to be its long-standing resistance level of 0.081 BTC.

The Ethereum-Bitcoin pair is predicted to experience an additional drop against its multiple-month progressing trendline support. The current trendline synchronizes with 0.06 BTC, 2022’s pullback zones. This is to say, a 10 percent drop is around the corner. 

The bearishness of the Ethereum-USD pair is not any better. Ether may experience a decline of up to 45 per cent due to what seems to be a climbing triangle pattern in a downtrend.

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