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Thursday, September 15, 2022

Ethereum Completes Merge and Rehaul of Blockchain, Stock Falls

Will this be enough?   

Ethereum Merge Brings 'Sell-the-Fact' Price Move in Crypto Markets  in CoinDesk

The price stability that prevailed after Ethereum's shift to a more energy-efficient "proof-of-stake" network suddenly evaporated as ether slid 9.1%, its worst day since late August.

By Jocelyn Yang, Omkar Godbole

The price of ether (ETH) tumbled suddenly in cryptocurrency markets Thursday, ending a stretch of price stability that prevailed in the hours after the Ethereum blockchain completed its historic shift to a more energy-efficient "proof-of-stake" blockchain, known as the Merge.

At press time, the second-largest cryptocurrency was down 9.1% to $1,489, its biggest daily decline since Aug. 26. By contrast, bitcoin (BTC), the largest cryptocurrency, was down only about 2% on the day. The CoinDesk Market Index was down about 4%.

The sudden price dump looks like a "buy-the-rumor, sell-the-fact" response, said Riyad Carey, a research analyst at crypto data firm Kaiko.

“There is still a lot of leverage in ETH markets, so volatility should be expected and will probably be welcomed by traders who watched the Merge go by without much of a move up or down,” Carey told CoinDesk in a written note. “We’ve also seen market depth decrease and spreads increase, so that will likely factor into larger price movements.”

The 'Ethereum Merge trade' unwinds 

CoinDesk reported earlier on blockchain data showing that investors were sending ETH to crypto exchanges in droves – often taken as a sign that holders are getting ready to dump. The cumulative inflow of $1.2 billion was the largest in six months.

By most accounts, the Ethereum blockchain appears to have dodged major technological snafus that might have led to a much deeper price crash. ... ' 

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