Key Takeaways
- The price of Ethereum is down to 8.7% as the merge day edges closer; just a couple of days.
- Many warn that the merge might become a "sell the news" event.
It has been all buzz and elation since the Ethereum Merge was announced some months ago. Though the market has been down, hopes are hinged upon a better situation when the Ethereum Merge is launched. Google has further heightened the excitement around the merge by creating a countdown on its interface with two cartoons with open hands getting closer as the launch day gets nearer.
However, some brow-lifting news dropped onto the airwaves in the last couple of hours. The price of Ethereum is down to 8.7% as the merge day edges closer; just a couple of days. There are several speculations around this not-so-good news as many warn that the merge might become a "sell the news" event as Ethereum suffered a crash after today's higher-than-expected Consumer Price Index Print.
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With Inflation At 8.3%, Ethereum Risks “Sell The News” Merge
The upcoming Ethereum merge has been the fuzz of the cryptocurrency ecosystem for a while. The merge is close to its launch, but investors have begun to sell their ETH after receiving news of the high inflation unfurling in the U.S. A news report by the Consumer Price Index reveals that U.S. inflation eased to 8.3% in August.
The cost of products increased by 0.1% from one month to the next. The result exceeded estimates of a 40 basis point reduction even though it showed that inflation had decreased from July's 8.5% print.
Immediately after the report was released, stock futures and cryptocurrencies fell, with ETH down 8.7%. The sudden decline occurred amid increased interest in Ethereum's Merge event, suggesting that the much-anticipated upgrade may not be the positive driver for price growth that ETH holders are expecting. According to current projections, the Merge should arrive early on Thursday.
In the months leading up to the merge, ETH demonstrated strength. Following the Three Arrows Capital liquidity crisis event in June, the second-ranked cryptocurrency took a significant fall and fell under $900 for the first time in 18 months. But throughout July and August, it recovered by more than 100%, momentarily surpassing $2,000 on August 15. The increase was aided by plans for an Ethereum Proof-of-Work fork, or EthereumPOW; it is anticipated that holders of ETH will get an airdrop of the forked coins when the network launches.
But since the middle of August, ETH has had trouble maintaining its momentum. As a result, there are doubts in the market as many warn that the Ethereum merge might become a "sell the news" event because of the crash. "Sell the news" is a popular trend in the cryptocurrency ecosystem which warns traders and investors of an impending risk. What do you think about this latest update? Let us know your thoughts in the comment section below.
