Ethereum [ETH], the world’s largest altcoin, might be losing its plot despite anticipation around the Merge. Rather, one can say that the token is seeing a delayed plot. Ethereum core developer Tim Beiko recently opined that the merge to proof-of-stake (PoS) would happen between August and November. This announcement follows more bad news for Ethereum enthusiasts hoping for the completion of the Ethereum 2.0 Merge in August.
Here is another bomb…
Data on Coinbase revealed that Ethereum was priced at $1,519.03 per US dollar at press time, having fallen 11.53% in the past 24 hours. In fact, ETH remains well below its all-time high of $4,891.70. In the past week alone, the crypto has fallen by 14.04%.
According to blockchain data explorer Blockchair, exactly 1,228,131 Ethereum transactions failed between 1 May and 31 May. Furthermore, the trend seemed to continue at the time of writing. Ergo, Ethereum’s transaction volumes have also dropped substantially given the current situation.
Towards the start of the week of June 5, it went down to 1.22 million ETH – A level not seen since mid-2020. Also at press time, the number was between one million and two million. Indeed, a downtrend since May 2021.
While most cryptocurrency market participants continue to struggle with bearish days, HODLers of the second-largest asset by market capitalization are also facing record lows in profit. Indeed, the percentage of Ethereum addresses in profits is at its monthly low.
Additionally, as revealed by Glassnodeit is On-chain alert count on June 12, HODLers in losses tipped significantly.
This is the after-effect of increasing Ethereum selling pressure as the price continues to trade down south.
Keep the best for last ?
Another MAJOR concern for Ethereum is the unprecedented liquidation at the moment. Around $230 million worth of ETH tokens were liquidated in one day as the price fell. It is now, but outright decline could soon have serious consequences. Consider this, for example –
According to parsec finance, when ETH falls to around $1,150, nearly $500 million of on-chain collateral will face liquidation. wBTC will have more than $300 million of on-chain collateral near $21,600 or face liquidations.
Additionally, according to Curve, the asset ratio of the stETH/ETH pool is skewed, with ETH accounting for 24.11% and stETH accounting for 75.89%. stETH got slightly untied and the unbalanced pool meant that one of the assets, stETH in this case, became more illiquid i.e. it would become difficult to sell as there is not enough ETH liquidity to incorporate stETH sell orders at current prices.
Looks like we just have to wait and look for what’s in store next?
