- More and more people are raising concerns about Ethereum.
- People are not excited about the Merge anymore.
- The fact that staked ETH is de-pegging is also not helping Ethereum’s case.
More and more people are raising concerns about Ethereum, particularly the Merge. Some people believe that we might be seeing the beginning of the end for Ethereum.
One of the main reasons why Ethereum’s light might be dimming is that people are no longer excited about the Merge. This is mostly due to the fact that the project’s deadline has been moved back again. Some people are even convinced that the Merge will happen next year, instead of 2022.
The excitement toward the Merge is also more lackluster due to ETH investors’ misconceptions about the event being proven wrong. The Merge will do nothing to reduce transaction fees and will also not allow you to withdraw staked ETH.
The fact that staked ETH is de-pegging is also not helping Ethereum’s case. Lido staked Ethereum is off its peg by about 4%, which only increases sell pressure even more. This is also diminishing people’s trust in the Merge, leading them to de-risk themselves.
People who are reluctant to sell their non-fungible tokens (NFT) to prevent losing money have also caused the DeFi and CeFi rewards to plummet. This may also have an effect on ETH.
All of this prompted analyst Nik Bhatia to draw the conclusion that Ethereum is displaying patterns that mirrors the deaths of other altcoins.
He also mentioned that “this is only a price study opinion, and [he’d] be quick to change this opinion if the price reverses. [B]ut right now, the price of Ethereum vs Bitcoin is looking very suspect.”