The volatility inherent in the digital currency ecosystem may seem stabilized at the moment, but a deeper insight into on-chain analytics shows more indeterminate trends are at play.
These trends can easily tilt the balance in space, and per the current outlook, the bears seem to be igniting such a pressure that can grow to their advantage if sustained enough.
At the time of writing, Ethereum (ETH) has started paring off its weekly gain and is down 4.53% to $1,690.39, according to data from CoinMarketCap. This Ethereum slip is not a standalone event as it trails Bitcoin (BTC), which has slipped by 3.65% over the past 24 hours to $23,089.63.
Considering the two digital currencies largely define the pace at which other altcoins move, we have seen a massive negative trend on all key altcoins, including Solana (SOL), Cardano (ADA), and Binance Coin (BNB), and Polkadot (DOT) to mention a few.
Besides the current negative slide being seen, the industry has experienced a transient revival over the past two weeks. While the market bulls are still trying to figure out the best strategies to place their bet in order not to get burnt, as in the case of Terraform Labs and Celsius, investors must hang onto a whole new fundamental that can help sustain the positive sentiment to stay committed to digital assets.
Pitching Ethereum’s Merge Event as the Temporary Bull Factor
In searching for an encompassing use case that can keep market bulls in line in the medium term, the forthcoming Ethereum’s Proof-of-Stake (PoS) merge with the Proof-of-Work (PoW) is one formidable push that can rally even Bitcoin as well as other digital currencies.
The emergence of Ethereum 2.0 will mark another era of scalability, usability, and energy efficiency for the world’s second-largest blockchain network. Investors, particularly the corporate ones, are poised to pay more favorable attention to Ethereum-based products as they can now fit more into their ESG strategies with its now energy efficiency.
The fact that it is also cheaper than Bitcoin and that real-world use cases can be attached to the protocol will also drive its growth.
With September 19 set for the event, CoinShares data shows institutional investors have started stacking up on the coin as they may be pushed to buy the rumour and sell the news. The expectation is that the potential embrace of Ethereum will also spread out to other altcoins even though the coin’s successes will be a way of demarketing the offerings of the so-called “Ethereum Killers”.
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Source: https://blockchain.news/analysis/market-slips-into-a-bear-motionfate-in-the-merge-of-eth-might-reboot-positive-sentiment