Ethereum is gone below the support level which he had been holding since November 2021 on the ETH / BTC graph. The second largest cryptocurrency in the world by market capitalization has fallen more than 20% against Bitcoin since it peaked in December.
Apprehension of The Merge upgrade
With The Merge update scheduled for August of this year, Ethereum hits its lowest level of the year against Bitcoin. It fell exactly 0.06 BTC per coin after the support broke at 0.065.
This decline may be a sign of a concerns about the impact of proof on the future of blockchain. So some key performance indicators are showing bearish signals. Tier 2s has reduced excitement for NFTs, stagnant asset portfolios and Tier 1 cannibalization.
The uncertainties around the global market and concerns about The Merge update are probably cooling investors. In fact, Ethereum’s chain usage is declining. As of this writing, only 53% of Ethereum holders are showing profits, and 60% of investors have held the assets for over 18 months. This decline in profitable transactions clearly demonstrates the importance of worsening across all cryptocurrency markets.
Access to buyers of targeted short- or medium-term investments is crucial for a variety of information sources and quality indicators, especially in the context of volatile market.
However, the famous trader CoinMamba had a different view:
The indicators change with the cycles. They were also down in 2018-2019 before significant growth. Predictions based on today’s numbers are not the right way to perform crypto valuations.
Edge browser data also shows a spike in the positive outlook towards Ethereum on social media.
Decline in Ethereum dominance
While Bitcoin’s dominance has increased 10% since the beginning of May, Ethereum has reached its lowest level since March. Note also the 20% increase in the dominance of Bin Binance in May. Amid the debate that Ethereum is the biggest competitor to Bitcoin, this indicator once again challenges that claim.
Ethereum blockchain upgrade has been overdue for years and is a part of it of the most important changes in the history of cryptocurrencies. This will be the biggest test Ethereum has ever suffered. Today, the entire digital asset industry is eagerly awaiting the Tier 1 reaction when the mainnet goes live after The Merge.
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