This article will discuss, "Why Is Ethereum Dropping After Merge?" Let's get started.
Why Is Ethereum Dropping After Merge?
The Merge should be considered against the background of the global macroeconomic challenges, which affect the price of any financial asset.
Since cryptocurrencies, like ETH, are risky, unpredictable investments, any significant decline or increase in price is necessarily followed by inflation at this time.
To combat inflation, banks adjust interest rates. Although inflation decreases the more frequently banks raise interest rates in a year, investors' purchasing power also decreases. People stop buying cryptocurrencies and instead decide to keep it or start selling it. As an example of the relationship between inflation and Ethereum pricing, let's look at some recent news: on September 21, Ethereum price dropped significantly from $1,348 to $1,245, after the Federal Reserve announced its fifth rate hike this year.
Therefore, it would be too optimistic to expect a sharp increase in Ethereum price now. Until banks are able to contain and reduce inflation, Ethereum will stay at approximately the same low level. According to OQTACORE estimates, Ethereum prices will not exceed $2,200 within the next six months.
Why Is Ethereum Dropping After Merge? - Hopefully, this article can help you to understand it better.
