inflation is still at a very high level in the United States and in most
developed countries, the Fed has been aggressively increasing its key interest
rates to tumble inflation, which is weighing on global growth prospects, as
recession risks are intensifying. This situation is negatively impacting
traditional markets, as well as the cryptocurrency market.
crypto-investors might be wondering if it is time to buy Ethereum to take
advantage of its lower prices and growth potential over time. Others might be
ready to take advantage of all market opportunities with short-term trades
through regulated and safe brokers like . Regardless of how you
want to take advantage of Ethereum, let’s take a close look at the
reasons why prices have gone down and if it is worth investing in the ETH
have ETH prices gone down so much?
of Ethereum have gone up since the bottom reached July, mostly in anticipation
of the big event. But when The Merge was over, investors wanted to secure some
of their gains, which has pushed the price of the token down since the event.
But that’s not the only reason for the drop. The cryptocurrency market is
indeed increasingly correlated to the traditional markets, which means that it
is often impacted by economic news, such as inflation figures and monetary
policy decisions from major countries.
Federal Reserve begins its two-day monetary policy meeting today and further
decisions are expected this week from the Bank of England, the Bank of Japan,
and the Swiss central bank. This is why investors are somewhat wary of
investing in such risky assets as cryptocurrencies right now, as lower
purchasing power and tightening conditions around the globe are weighing on the
should also not forget the intervention of the Chair of the U.S. Securities and
Exchange Commission, Gary Gensler, who indicated last week that . This would mean that the
regulators would have the right to look over these tokens, which now includes
Ether, and that rules could regulate investment in such assets.
will The Merge help Ethereum grow over time?
of the most common criticisms of cryptocurrencies is that they are energy
blockchain following a proof-of-work transaction validation consensus relies on
“miners”, who must solve a complex
mathematical problem as quickly as possible to be the one chosen to add a block
to the blockchain and reap the rewards.
solve these mathematical puzzles, miners must use the computation power of the
hardware they own, which runs on electricity. The more power the mining
hardware has, the faster it is and the more likely it is to solve the
mathematical problem quickly and earn rewards. But this also means that it
consumes more energy.
blockchains also require more time to identify, validate and add a block to the
blockchain. This means that the number of transactions processed per second is
somewhat limited. To address the scalability issues of its blockchain, Ethereum
has therefore decided to move from a proof-of-work blockchain to a
proof-of-stake blockchain. Thus, its network will be much less energy
intensive, much faster, and potentially less expensive in the long run.
not forget Ethereum is also one of the most popular and widely used
cryptocurrencies in the world of decentralized applications, NFT,
and the metaverse. So the token’s growth potential is important, as The Merge
should help the blockchain attract more users in future key domains of the
is it time to buy Ethereum?
you can answer this question, depending on your strategy, your financial goals,
your capital, and your time horizon. Even though the cryptocurrency market is a
a volatile market, it is also full of opportunities you can exploit, over the
short or long term. But always remember to follow your trading plan and stick
to your money management rules.