Ethereum is more susceptible to Wall Street fluctuations than bitcoin.
Bitcoin’s high resilience to fluctuations in New York stock indices and the actions of the U.S. Federal Reserve has become more attractive to investors than Ethereum’s high volatility. That’s why, as CryptoQuant attention CryptoQuant, the actions of large investors in Ethereum on the eve of the Merge update showed that they were predicting a decline in the price of ETH.
On September 17 alone, ETH lost 5.8%, rolling back to $1,378,000, while bitcoin dropped in price by only 1.46%, to $19,717,000. The second full week of September proved to be the worst for Wall Street, and it was Ethereum that reacted more declineETH plummeted 22% in the last seven days, while bitcoin lost only 8.9%.
In this situation, the Merge update could not fundamentally affect the price of Erthereum, and the actions of large investors in ETH only reinforced the downtrend: the excess of short positions over long ones was growing two days before Merge, reaching a peak just during the implementation of the update to the Ethereum blockchain. At the same time, large investors in ETH chose to sell a significant volume of this cryptocurrency during the Merge update.
Analyst Benjamin Cohen believes that the downward trend in Wall Street indices will continue, and this will have a negative impact on the cryptocurrency market as a whole. At the same time, Cohen sees that the price of bitcoin will find strong market support when it falls from the current value of 10%, but for Ethereum he expects a powerful movement in minus 40%, and only then, perhaps, the market will see the “bottom” for this cryptocurrency.