On 15th, September, 2022, the highly awaited upgrade on the Ethereum network, The Merge, took place. The upgrade was so hyped that it was anticipated to bring a massive boom to the Ethereum (ETH) price. Not only this, it was even considered that the merge could even result fruitful for overall beleaguered crypto space. But it seems like everythings did not go well according to the place, at least the impact on the price portion.
Following the merge upgrade, Ethereum network transitioned from proof-of-work to proof-of-stakes. This changed the regime for Ethereum miners on the network. The network designated validators only to those who staked 32 ETH.
Soon after the event of Merge upgrade, bitcoin price witnessed a drop of about 1,000 USD. Meanwhile Ethereum lost approx 200 USD worth. The impact was not momentary, it continued for the next few days. By 18th September, the price of Etheruem even dropped to 1,335.33 USD.
At the time of writing, the situation for the smart contract network’s native asset has not recovered. Currently it is trading at approx 1,290 with a drop of almost 19% within the last seven days.
Price drop indicates the anticipation from the upgrade to give the crypto a much needed push has got reversed. This is potentially because of Ethereum miners as the transition has completely changed the validation of transactions.
Earlier, Ethereum miners were getting approx 13,000 ETH on an average, until Etheruem was a proof-of-work network. However, the rewards for the validators now range around 1,600 ETH. This shows a significant drop of about 90%.
Moreover, Ethereum miners reported to sell off about 30,000 ETH from their Ethereum holdings following the impact of upgrade and price drop. This instance of ETH dump also played a major role in the price drop. The sell off created an indirect pressure all over the market and it’s getting intensified with every passing day.