Ethereum, the world’s most popular crypto blockchain network, passed a critical test ahead of a much-anticipated technological upgrade. On June 8, the Ropsten testnet successfully merged with the Ethereum mainnet. Unfortunately, the significance of the upgrade was lost on ETH traders. ETH’s price dropped 1% throughout yesterday ‘s trading session. Some believe that the ETH price dropped as the Merge was not 100% successful.
The price is down because it wasn't 100% successful. There's errors in the transactions. ETH 2 has just been riddled with errors and the fact there's so many people working on it for so long now highlights theres a really high chance it's going to fail.
— Crypto Tweet (@CryptoTweetiee) June 8, 2022
Investors have viewed the upgrade as a positive sign for the network and its currency, as it is expected to reduce Ethereum’s carbon footprint by 99%, alleviating environmental concerns. However, the upgrade was not able to push the ETH price back above $2,000 and beyond. According to TradingView, the price of ether dropped about 1% of its value in the previous 24 hours.
$ETH down 1% on news that Ropsten merged successfully.
The crypto market is too dumb to understand that ETH and $Btc have completely different risk/reward profiles right now.
But ultrasound money fundamentals will force the decoupling.
— Evan Van Ness 🦇🔊 (@evan_van_ness) June 8, 2022
Some Ethereum investors have expressed their dissatisfaction with ETH’s recent price behaviour. The market’s manipulation related to pricing news, events, and updates even before they reach the public domain are cited as the main reason behind ETH’s poor price performance even after the successful Merge.
“The Merge” will also determine the stability and effectiveness of the network before it is rolled out to the main Ethereum network in the near future. There’s also a chance that when the update happens on the main network, there won’t be any increase in volatility because it’ll be priced before the Merge. If there is a technical issue that causes difficulty using the coin or decentralised applications built on top of the network, there could be a spike in volatility and aberrant performance.
The ETH price has dropped 62.03% compared to its all-time high of $4,891.70. ETH is currently trading at $1,817.35 at the time of writing as it was able to recoup some of yesterday’s losses as the crypto market saw a minor rise.
Read more:
- Seasoned trader Peter Brandt shares Ethereum descending triangle chart with downside trend
- Former Bittrex CEO predicts Ethereum may reach $10,000 by the end of 2022
