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Over the past week, the value of Ethereum has fallen by more than 18 percent. Over the past day, the price of the asset has decreased by another 4 percent. At the moment, the price of the cryptocurrency is just over $ 1570.
The fall lasts more than 7 days. So far, reaching the psychological mark of $ 2,000 seems an unattainable goal for ETH. However, the developers hope that after Merge the price of the asset will rise and it will again be worth more than $ 2,000. How justified their forecasts will be known at the end of September.
Why Ethereum has been losing its value for more than a week
What can be the reason for the decrease in the cost of ETH? Perhaps this is due to the fact that the Office of Foreign Assets Control imposed a sanction against Tornado Cash. The actions of the authorities were sharply criticized by the cryptocurrency community.
It cannot be ruled out that the cryptocurrency industry will soon face even more restrictions from regulators. According to some participants in the crypto market, 66% of beacon Chain Ethereum validators will have to obey regulators if they are forced to do so. But the news that sanctions have been imposed against Tornado Cash is not the only reason for the fall in the price of ETH.
Even more, the decline in the Ethereum rate is affected by the decrease in the pamp of rates from the latest news before the merger. While the positive has worked, the market is declining in anticipation of new news.
What else affects the decline in the value of Ethereum
Within 7 days, the total market capitalization fell to $ 1,072 billion, losing 3.3% compared to similar figures a day ago. All the world’s leading coins and tokens have fallen in price over the past day. The only exception was EOS. Now the market capitalization has grown slightly, by about 0.3%. But this indicator is within the statistical error.
The fall in the value of ETH can also be caused by the fact that there is not a single factor that would indicate an improvement in the global economy. Inflation is rising, energy and food prices are rising. Investors get rid of risky assets.
Regulators do not have effective mechanisms to cope with high inflation. The population in many countries is moving to a mobilization economy, in which they spend money only on the most necessary.
Against this background, you should not expect positive news in the cryptocurrency market. In addition, it is impossible to exclude the possibility when, after the merger of Ethereum, even more problems will begin than there have been so far.
Author: Vadim Gruzdev, Analyst Freedman Club Crypto News
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