Ethereum Comments Revealed the Situation After Merge!

After the Ethereum Merge, which was eagerly awaited by the entire cryptocurrency world, the market turned down instead of turning up.

Ethereum, the largest altcoin, has lost 25% in the last seven days. Clearly, the much-hyped Merge failed to have the expected impact on the market. Despite the fundamental change in emission dynamics, the event resulted in a massive drop in price.

The question now is: Can an institutional reaction have an impact on individuals? Could things get worse for the second largest cryptocurrency?

Ethereum Latest Status

Ethereum successfully executed the Merge after years of anticipation, but ETH's price plummeted. The number two crypto has lost 25% of its market cap over the past week. This has led many to believe that the event has turned into a trigger that market participants describe as "buy the rumor, sell the news".

Was Merge just another classic 'sell the news' event? A look at the charts screamed yes! Traders bought ETH when the Merge date was announced earlier this year and sold when the actual event happened. All the while, Ergo and some ETH hard forks made gains.

In contrast, BTC fell by 5%. So, the general crypto correction environment hasn't provided much ground for ETH. In fact, the leading altcoin still seems to be struggling to get back on track after the Terra fiasco that severely hurt its price. According to one report, while ETH on smart contracts has been on an uptrend since 2020, the collapse of Terra in May halted that growth.

As of May 9, when Terra crashed, the total percentage of ETH in smart contracts reached 30%. Meanwhile, a combination of the crypto bear market, increased volume in L2s and upgrades to the protocol's contracts for gas efficiency reduced the protocol's revenue. Even the supply of ETH on smart contracts repeated the same scenario.

Is It All Over?

At the time of writing, Ethereum has experienced a new 2% correction in 24 hours, falling below the $1400 level. However, despite the situation, some features remained intact. Data showed that the supply of new ETH on the market decreased by over 90%, unlike during the PoW period.

This could have a beneficial price impact going forward, given that demand for cryptocurrency remains stable or increases.

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