Ethereum has been at the center of discussions on social media following Fusion’s release last week. However, not everything went according to plan as ETH prices dipped below $1,350.
In fact, Ether’s weekly losses are now over 17% according to CoinMarketCap. But an anonymous fan of the crypto (@CryptoGucci) believes all hope is not lost for Ethereum in a recent tweet thread.
The last 48 hours on #Ethereum, a quick threadπ§΅.
β Crypto-Gucci.eth α΅α΅π¦π (@CryptoGucci) September 21, 2022
Back to normal soon?
Analyst reignites conversation about Ethereum validators rising over 11.36k in September alone. See also: Bybit Exchange Signs Multi-Million Dollar Deal With Red Bull Racing.
Ethereum now has over 429,600 active validators on the network. This late rise in the number of online validators means a growing increase in investor confidence from a technical standpoint of the merger.
With that being said, major NFT marketplace OpenSea has now extended its support for Arbitrum. OpenSea announced the news in a tweet yesterday (Sep 20), saying that users will now be able to buy and sell NFTs on the Ethereum Layer 2 solution.
NFTs will start working in Arbitrum only from September 21, without delay.
Butβ¦
Despite these encores of optimism, the situation remains bleak for Ethereum and the crypto market in general. See the article: But why has the price of Bitcoin (BTC) plunged so violently, despite the FOMC push? Will BTC hit $30,000 this week?. Major crypto assets like BTC and ETH are still struggling in the market.
At press time, bitcoin was trading below $19,000, while ETH was available at around $1,330. Both tokens have tumbled over the last day and continue to be affected by macro factors.
The situation is similar for Ethereum traders in light of the price drop. The MVRV ratio for Ethereum has now dropped to -13.6% as the return has declined massively over the last week.
This process was exacerbated by a sell-off after the merger event. Trader sentiment remains a crucial cog in any near-term rally as the asset remains in dire straits at the moment.
Here is another failed aspect seen on Ethereum today (Sep 21). According to blockchain analytics platform Glassnode, Ethereum’s average transaction volume has fallen to an all-time low of 0.032 ETH.
This is a clear reflection of the collapsing state of Ethereum trader sentiment at the moment, with many looking to reduce their exposure to ETH.
Another worrying factor for Ethereum is the growing negative sentiment in the crypto community. From the data below, we can see how FUD is taking hold of the crowd despite the “highly anticipated” merge event. It appears that Ethereum is looking to end Q3 on a similar note to the previous quarter.
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Passionate about cryptocurrencies and DeFI, Thomas broadcasts international news on this topic!