Experienced crypto analyst believes that Ethereum is going to have hard time against Bitcoin
If we take a look at the ETH/BTC chart, it may seem that the first cryptocurrency is on the verge of arrival. quitting In oblivion given the explosive growth of ETH against it. However, the post-merger market is not playing by the rules of Ethereum.
Between July 13 and Sept. 8, Ethereum gained almost 60% to its value against Bitcoin. The 60-day rally, however, did not turn out well as Bitcoin started to quickly gain some of its dominance back and Ethereum started to lose momentum after the Merge update went live.
Over the past 10 days, Ether has lost half as much as before, after a correction of about 20%. Positions on the daily chart may indicate an upcoming reversal in the trading range in which the asset moved prior to the merge promotion.
Why are investors giving up on Merge?
While the update itself was successful and went through without any issues occuring on the network, Ethereum saw a massive spike in selling pressure hours after that. Some analysts explained it with the common market rule: “Buy the rumor, sell the news.”
Ethereum’s attractiveness as a financial asset grew rapidly prior to the fundamental update; However, the absence of an explosive rally right after the update went live caused unrest among market participants, who decided to defend themselves and exited their positions at a profit.
In addition to the Bitcoin pair, Ethereum is rapidly losing value against the U.S. dollar as the price of the second biggest cryptocurrency on the market plunged below the $1,300 price range. The next technical support level for the cryptocurrency is staying at $1,280, which is the upper border of June’s trading range.