Ethereum is suffering losses, Ripple’s XRP is pumping

Ethereum is suffering losses, Ripple's XRP is pumping

Subscribe to our Telegram channel and get instant notifications!

ETH is down 19% since The Merge. On the other hand, Ripple’s XRP rose sharply this week when it was announced that the US Securities and Exchange Commission’s lawsuit against Ripple may soon end.

Buy XRP at eToro now

Ethereum is going down

Crypto market leaders Bitcoin and Ethereum fell on Wednesday following news that the US Federal Reserve is raising interest rates by another 75 basis points. The aim: to limit the effects of inflation.


Back in June, when the Fed raised interest rates by 75 basis points for the first time this year, many noted that it was the central bank’s biggest rate hike since 1994.

In July, the Fed announced another hike of 0.75%. Both Bitcoin and Ethereum skyrocketed within an hour of the announcement.

This is not normal market behavior as interest rate rises make borrowing more expensive. This, in turn, means that investors are more likely to dump their riskiest assets.

In any case, neither of the top two cryptocurrencies was able to gain ground this time. According to CoinGecko, Bitcoin is down 0.53% in the last seven days and is currently trading for $19,086. On the other hand, Ethereum is down 7.5% to $1,328.

Several other leading cryptocurrencies posted double-digit percentage losses this week. This includes COSMOS, which fell 12% to $14.39. Ethereum Classic (ETC) is down 15% to $28.74 and Near Protocol (NEAR) is down 10.5% to $3.79.

These coins were expandable

However, a few coins escaped, posting double-digit percentage gains: Stellar (XLM) rose 16% to $0.1243, Cronos climbed 16% to $0.1228, and Algorand (ALGO) rose 38% to $0.408 Dollars.

Ripple’s XRP saw the biggest rise, with the token rising 46% to $0.5232 in a week. The rebound follows news earlier in the week that both Ripple and the SEC have filed motions for summary judgment in the $1.3 billion lawsuit to dismiss the suit before trial.

The SEC took Ripple to court in December 2020 for allegedly selling XRP as an unregistered security.

The week after The Merge

Of course, ETH was already on a downward journey ahead of the Fed’s inflation news this week.

Glassnode data shows that The Merge is predicted to be a largely “buy the rumor, sell the news” situation. Glassnode on this:

“No wonder profits were taken when profits were possible. Funding rates have since fully returned to neutral territory [nachdem sie im Vorfeld der Fusion auf ein Allzeittief von -1.200 % gesunken waren]suggesting that much of the near-term speculative premium has disappeared.”

Glassnode reported overwhelming demand for call options for ETH at a premium in August, calling it an “extremely bullish trend” for the asset’s price in September.

However, the same report notes that the implied volatility of ETH was higher on downside price predictions than upside predictions. This suggests that “traders paid a premium for post-merger put protection.”

Ethereum miners were heavily involved in the run-up to the merger. According to OKLink, which pulls data from a dozen different mining pools, including F2Pool, Binance, and, miners sold a total of 14,785 ETH worth $19.73 million between September 9 and the day of the September 15 merger. The largest sale occurred on September 14, when miners sold nearly 8,032 Ethereum.

Gensler vs. Ethereum

In a federal lawsuit filed against the crypto influencer on Monday, the SEC indicated that it believes the US government has jurisdiction over all Ethereum transactions.

According to a sentence in paragraph 69 of the law, the SEC argues that it cannot sue Ian Balina just because his case involves transactions in the United States. But also because most of the Ethereum network collectors are based in the United States of America, that means that the entire blockchain falls under the purview of the government. So argues the SEC.

Gensler previously said that Bitcoin is a commodity. But many think his silence on Ethereum could be a sign that he essentially sees the blockchain as a US securities exchange.

Just last week, Gensler said that proof-of-stake cryptocurrencies, which allow holders to passively earn returns through betting, could be classified as securities:

“From a monetary perspective, this is another sign that the investment community is expecting profits based on the efforts of others after the SEC’s ‘Howey test’.”

Buy ETH on eToro now

Text proof: Decrypt

Tamadoge ICO on September 27, 2022 at OKX!

  • Pre-register now with OKX for Tamadoge Launch
  • Play2Earn is a favorite crypto with a meme base cult factor
  • Best new token 2022 – ICO on 27.09. don’t miss!

Crypto Launchpad: The Best Telegram Group!

  • Neutral market analysts
  • Daily summary: winners/losers of the last 24 hours
  • All because of the current NFT hype

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.

Is Ethereum now inflated or deflated after The Merge?

Is Ethereum now inflated or deflated after The Merge?

top cryptos a acheter

Singapore, this country where the big banks love Bitcoin and Ethereum