Miners Dump Ethereum Over Merge Anger

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Last Updated on 24 September 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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You may recall that back in August people were hyped and positive about the merge. The switch from proof of work to proof of stake for Ethereum would cause it to become an investment opportunity that Wall Street wouldn’t want to miss. Green credentials, endless possibilities, the sky was the limit apparently.

But ever since Ethereum Merged, it has been going in only one direction, and that’s down.

Advertentie.

Inflation, miners and sell the news

It is now agreed upon that the recent downfall of Ethereum has three reasons.

Firstly, analysts state that most major investors (hedge funds, pension funds etc.) are currently selling risky assets because of the outcome of the Federal Reserve’s two-day meeting of its Open Markets Committee this week. The steep interest rate hikes that were announced in the wake of soaring inflation mean that it will be a while before interest rates come down again.

Secondly, Ethereum experienced a buy the rumor sell the news action where the price went up before the Merge as speculators expected interest for the happening to soar in the weeks before, and then go back down again when it happened.

However, as of late it has become clear that the anger of miners for the switch to proof of stake is also a reason. According to data from OKLink miners offloaded 30,000 ETH in the past week.

The massive dumping from ex-miners is a significant factor to the ETH downtrend, Harrison Dell, the director of Cadena Lega, explained. Once the market has absorbed that impact of The Merge including the exit of ex-miners who held a substantial amount of ETH, it may start to recover and the deflationary mechanics become clearer.

Ok, so anytime now we’ll touch support then I guess, I hope…