The past 24 hours had Ethereum on a sharp decline. The bearish slide emerged due to concerns about a potential delay in the platform’s planned switch to the PoS (proof-of-stock) model.
Coinmarketcap data shows the 2nd-largest crypto by value lost more than 10 to sub $1.5K. While writing this content, ETH traded at $1,558. That had it exploring levels never witnessed since 2021 March. The alternative token has dropped 56% in 2022 and has performed worse than Bitcoin.
Several factors contributed to Ethereum’s recent losses. A delay in the much-anticipated difficulty bomb is the source of the latest downward pressure. Moreover, the higher-than-expected United States inflation data (on Friday) rattled the crypto world.
ETH Merge Potentially Delayed
ETH developers have delayed the much-anticipated difficulty bomb despite the successful Ropsten testnet deployment. The move possibly postpones the planning mining phase-out, raising eyebrows over merge delay.
That also triggers doubts about founder Vitalik Buterin’s claims of the merge coming by August. Remember, the merge remains the most awaited event in the cryptocurrency market this year, as it would transition the ETH blockchain to proof-of-stake.
The move would ensure increased Ethereum accessibility by institutional and retail investors. Moreover, it can propel community participation within the chain, boosting ETH prices.
Ethereum to Crash to $1.2K?
Ethereum’s technical indicators show the prices forming a descending triangle formation. And that might see the alternative token crashing towards the $1,200 lows in the short term. Peter Brandt. A renowned analyst revealed the prediction.
Ethereum recorded impressive gains early in the year due to merge expectations. Positive sentiments propelled the leading alt towards the $3,500 highs. Any delayed event was to unwind the gains. Moreover, the slight merge testnet disruption (last month) left Ethereum prices at massive losses. Also, stETH losses raised concerns about the shock within the ETH DeFi network.
The overall crypto market remained weak at this publication, supporting Ethereum’s downward narrative. The global crypto market capitalization lost more than 4.45% within the previous day to $1.14 trillion. Also, BTC dropped to $28,460.
Stay tuned for upcoming updates.