Investors are creating a big switch over from Ethereum to other cryptocurrencies. The market has seen its fair share of growing pains and the company has struggled to find solutions to some high-profile security issues. The growing number of alternatives available today is making it easier for investors interested in alternative coins to diversify their portfolio, taking them away from Ethereum. Investors see this as an opportunity with innovative projects while ETH’s founders see this as a threat.
Despite a crackdown on initial coin offerings and token sales through the ICOs, investors are still seeking alternative cryptocurrenices with new technology.
“Most ICOs have some sort of utility token or service that is produced by an Ethereum-competitor in terms of its underlying technology,” explained Austin Riddett, co-founder of personally I am looking for currencies that have a use case unique to it. One such currency that fits this bill is Waltonchain (WTC). It’s basically like the PayPal of China. Another coin I like is Nuls (NULS).
Ethereum price is losing value
Ethereum prices have been in decline this week and are now below the $1,500 psychological level. Bearish candles are moving and often signal a trend reversal. They’re tough to escape from, but investors should know that they’re in danger.
Ethereum is currently auctioning for $1484 on Sunday, August 2028. The Relative Strength Index has a bit more cushion space to fall which confounds the current trend. The idea the market bottom has not yet been established, in spite of the harsh liquidation. Additionally, the VPI had a spike on the 19th of August. The bears have not yet been able to equalize this retaliatory trading day with equal or greater volume. These 2 indicators will offer bullish support in the near future.
Impact of the Merge upgrade on Ethereum
Let’s look at the changes that occur on this upgrade. First will be the transition from the Proof of Work to the Proof of stake consensus, along with the combining of Beacon Chain and the Ethereum network. The system will be ready to deploy Sharding mechanisms in order to further improve scalability.
I think now will be a good time to say the worse is coming for Ethereum and it’s ecosystem.
If you know futures, you know you can make money will Ethereum is dumping.
Be ready to short Ether.
Current price $1,400.
Last Possible TP: $300 (Loool)— Sir Mapy◻️ (@sirmapy) August 29, 2022
Ethereum’s economic structure will also be undergoing an overhaul, with Ethereum becoming deflationary. Actually, Ethereum’s progress was kicked off by the switchover of its deflationary mechanism. Ethereum’s annual inflation rate has declined by 50.77% so far and Expectations are that the completion of the Merge upgrade will cause a 90% reduction in the issuance of ETH tokens.
How much will the Merge impact Ethereum’s prices?
Ethereum plunged to below $1,500 before the SanFranciscoCoin-Ethereum merge. The fall in the price of Bitcoin is being attributed to whales moving their assets on the exchange with the Fed’s hawkish stance on curbing inflation, and the rise in the price of oil. On August 26th, Ethereum saw $2.6 billion in options expire. As a result, the prices fell below $1,600 because people were liquidating their holdings to cover the.
There are times when the Ethereum network might need to halt deposits and withdrawals during the process of the Merge. There is a possibility that Ethereum miners will sell their tokens before the merger. This will cause a burst in the price of Ethereum. Furthermore, there is a possibility that the writing of smart contracts might need to be halted during the process of the merge. The halt could possibly take several days to complete.
Have Ethereum investors jumped ship?
Ethereum is going through some tough times as investors are looking for alternative coins with better technology.
I think you should continue to support ETH as long as it can be both a strong currency and a store of value. If the project gets down on its feet, then it will become clear to see that it is not the best option for investment.
Right now Ethereum is the most valuable coin in general and the one with the best marketcap. It is still a two-year-old project and has had many bumps in its road. If Ethereum can solve those and make some progress, then it will be a better investment than other options available.
