Ethereum (ETH) Price Down by 8% Despite Merge Developments

Earlier yesterday, the Bellatrix update for Ethereum’s Beacon chain went live. The Ethereum merge began with this update and will conclude with the Paris upgrade. But despite all the excitement around the integration, the price of Ethereum has dropped by about 8%. The current market price is $1,519.

It is widely anticipated that the Ethereum merging will have a profoundly positive impact on the price of ETH and the cryptocurrency market as a whole. However, investors are worried about the price decline.

Short-term Decline?

Yesterday, the updated version of Bellatrix became available to users. The upgrade to Bellatrix initiates the merging. In addition, validators are granted the power to generate Beacon blocks. One of these blocks will also house the merge’s code.

After Ethereum’s Bellatrix update, network participation rates dropped. The inability of certain nodes to update their clients is to blame for the drop, say the experts. They anticipate a rise in involvement as more validators update their nodes to support Bellatrix.

Moreover, the missing blocks rate of Ethereum increased by almost 1700 percent following the update, which is a very concerning development. To combat inflation, the Fed is likely to maintain its aggressive approach. The entire crypto market is feeling the heat.

Cryptocurrency investors are anticipating the CPI release on September 13. Also, the merge will be finalized around that week. The value of Ethereum will be significantly affected by the two variables. According to CMC, the Ethereum price today is $1,519.34 USD with a 24-hour trading volume of $21,418,859,364 USD. Ethereum is down 8.79% in the last 24 hours.