The trading volume of Ethereum is slow, which is having an effect on the price of the cryptocurrency. The price is having difficulty staying lower than $1,600.
A significant number of individuals are looking forward to The Merge, which is an event that takes place within the bitcoin industry. Ethereum will be able to establish a proof-of-stake system once it has completed its merger with the Beacon Chain. As a direct result of the implementation of this technology, the amount of energy that is consumed by Ether will be significantly cut.
Despite the guarantees provided by the Merge that Ethereum would have a stronger vision in the future, investors continue to be suspicious about the currency. The price of ETH had a significant drop on August 28 to a level far lower than the support line of $1,500, and it has remained at that level for the past two days.
The expectations of traders currently sit at a rather modest level. On August 28, the amount of commerce that took place decreased by 45 percent, according to a source. As a result of the drop in overall trading volume, there was a major setback incurred by transactions. At the moment, one Ether token can be purchased for $1,580, representing a 1.7% decrease over the course of the previous week. The price of Ethereum is being impacted as a result of the lackluster trading volume.
ETH Trading Volume — Slug-Like
The typical number of transactions on Ethereum that take place during a seven-day period has decreased to 42,490 on a monthly basis. This is a representation of the concerns and perspectives that are currently held by global traders. A reduced coin price is one of the factors that will cause firms to walk away from a transaction.
The values of other coins have risen again after experiencing decreases in the recent past. Polygon and Cardano are, at best, the most famous ones to look out for.
The level of activity associated with perpetual futures contracts hit an all-time low as a direct result of a combination of factors, including a decline in investor confidence and excitement as well as a slowdown in network and transaction activity. According to Glassnode, the value of the currency dropped to its lowest point in the last three months on the Perpetual Futures market on August 28. This was the result of the first credit crisis in the history of cryptocurrencies, which took place in June of 2022.
Recent occurrences, such as the implosion of Terra and the recent address given by the Chair of the Federal Reserve, James Powell, are also able to be ascribed to the present price of Ethereum.
The cryptocurrency market is getting ready to merge.
The speech was met with a negative response across the board from the various financial markets. The major stock markets had declines ranging from one to two percent. According to the information provided by Coinglass, both Bitcoin and Ethereum were subjected to significant selloffs.
A variety of opinions, both positive and negative, have been voiced in recent days in light of the fact that the merger will take place in approximately 15 days. Others have a significant amount of skepticism regarding the purportedly favorable impacts that the merger will have on the cryptocurrency, despite the fact that some people have a very positive outlook on what the merger will bring about for Ethereum. In the meanwhile, due to the extreme volatility that the cryptocurrency market is experiencing right now, speculating is restricted. It is not yet clear whether the merger will result in a successful future for Ethereum or a downward spiral that will cause millions of people to suffer. Either way, the future is fraught with uncertainty.
We can only keep our fingers crossed and hope that the pairing would be beneficial to the extremely volatile alternative coin.