- ETH miners dumped 17,000 ETH in the past 7 days, likely due to ETH’s drop.
- Ethereum is currently trading at $1,330, down 2.16% over the past 24 hours.
- Several cryptocurrency analysts have weighed potential reasons for Ethereum’s downtrend, with a massive sell-off by ETH miners at the top of the list.
- Miners are awaiting positive price action ahead of the merger.
data from Haolian It showed that Ethereum miners sold nearly 17,000 ETH in the past 7 days, adding more pressure to Ethereum’s slump.
Ethereum miners offloaded 17,000 ETH in the past 7 days
The much-anticipated Ethereum merger failed to push the price of ETH higher, currently at $1,330.67. On top of that, the selling pressure initiated by Ethereum miners added more momentum to Ethereum’s plunge.
Data from Trading View shows that the price of ethereum has fallen sharply since September 15. ETH traded at $1,650 on the day of the merger and has since fallen sharply to trade at a new low of $1.330.
Several cryptocurrency analysts have weighed potential reasons for Ethereum’s downtrend, with miners dumping ETH at the top of the list. On top of that, analysts are considering other potential factors, including panic selling by investors ahead of the Federal Reserve’s two-day meeting scheduled for today. Investors expect a sharp rise in interest rates amid a surge in inflation in August, which could lead to a drop in the value of ethereum.
Among other things, pre-merger Ethereum was able to distribute around 13,000 ETH per day. However, after the merger event, the proportion of rewards to miners dropped significantly, by nearly 90%. Validators have now only accumulated 10.6% of their previous amount. As a result, Ethereum’s annual emissions fell by 0.5%, reducing Ethereum’s inflation rate.
“Many miners were waiting for aggressive price action from The Merge, and when that didn’t work out as expected, they exited the ETH space entirely to make money for new ventures,” as Cadena Lega Director Harrison Dell Say, provocative.
While analysts have flagged the massive sell-off by miners as one of the main reasons for Ethereum’s plummeting value, CoinGecko co-founder Bobby Ong believes that major macroeconomic factors are pushing ETH to new lows.
“I would say that the overall market decline, including ETH, is due to today’s FOMC meeting. Now that the ethereum merger is complete, all eyes are on the FOMC meeting scheduled for today… the market is expecting a Further rate hikes to control inflation, leading to a front-running sell-off in risky assets such as stocks and risky assets. Cryptocurrencies.” Ong reiterated (The provocative)
On September 20, Goldman Sachs expected Interest rates are set to quadruple between 2022 and 2024. Also, a two-day meeting scheduled for today could announce a rate hike of 4.25% to 4.5% to fight inflation, which could also force investors to panic and sell their assets for maximum profit.
However, the plummeting ETH value is expected to stabilize over time once the market has absorbed the selling pressure and macroeconomic factors have come into play, weeding out weaker parts of the market.