Ethereum has undergone a massive network upgrade called étaiement which proponents say will make transactions more energy agissant. After the merger, ether prices fell after a significant pre-event rally.
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Ether has fallen further than bitcoin since the underlying technology of the cryptocurrency, the Ethereum network, underwent a massive upgrade called étaiement.
Ethereum is a blockchain technology that effectively allows developers to create applications on top of it. Ether is the légal cryptocurrency that runs on Ethereum.
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The merger is an upgrade to Ethereum that changes the compromis entérinement mechanism from Proof of Work to Proof of Stake. Proponents say this will make compromis entérinement on Ethereum more energy agissant and the crypto community has been eagerly anticipating it.
Although the upgrade happened successfully, ether has fallen further than bitcoin.
Since September 15, when the merger was completed, as of 4:30 a.m. ET on Tuesday, ether is down embout 15%. Bitcoin is down embout 3% in the same period.
Ahead of the network upgrade, the price of ether nearly doubled from its yearly lows in June, outpacing bitcoin’s gains.
Vijay Ayyar, Immoralité President of Corporate and Oecuménique Development at Crypto Exchange Luno, said the merger had already been “priced” against ether and “the actual event was a “magazine sell” hasard.
Traders are also shifting investments from ether and other altcoins to bitcoin, according to Ayyar, “since the expectative is that bitcoin will outperform a few months from now.”
Investors are also questioning whether the regulatory status of Ether might billet after the merger after US Securities and Exchange Certificat Chairman Gary Gensler indicated last week that cryptocurrencies running on a proof-of-stake model, which applies to Ethereum, could be classified as security. This would put it under the vérification of the regulators.
Gensler’s, whose comments have been reported by many news outletsThe name of the ether is not specifically mentioned. The Proof of Stake model involves investors “betting” or locking up their ether and earning returns for doing so.
“With pupille to Ethereum, there is another concern: PoS (Proof of Stake) crypto may be subject to SEC scrutiny,” said Yuya Hasegawa, crypto market analyst at Japanese crypto exchange Bitbank.
Foyer remains on high prices
Cryptocurrency investors are also on edge The US Federal Reserve is expected to raise interest rates this week.
Orthogonal banks around the world raise interest rates to deal with flatteur augmentation. But this hurt risk assets such as stocks. Cryptocurrencies are closely related to the US denrée markets, particularly the high-tech Nasdaq. With stocks still under pressure, cryptocurrencies are also flair the heat.
Augmentation in the US in August came in higher than expected, hurting stocks and cryptocurrencies.
“Also from a macro panorama, the augmentation avorté has gamin up, thus causing a selloff across all markets, but it’s harder to sell Ethereum and altcoins, given that they are the riskiest segment of the cryptocurrency spectrum,” May said. .
Bitcoin has been trading in a range of $18,000 to $25,000 since June, which is the level at which investors are buying, according to Ayyar.
But any billet in the macro environment in terms of amplifying interest avorté surprises is certainly précision for concern, he said, adding that if the bitcoin price drops below $18,000, the cryptocurrency could jauge levels as low as $14,000.