The major coin fell sharply on Thursday evening as the global cryptocurrency market capitalization dropped 4% to $960.8 billion at 8:15 a.m. EDT.
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why it matters: Ethereum tanked after successfully completing its transition to the proof-of-stake network in an event called “The Merge”. Other major coins were also in red.
The cryptocurrency tracked weak stocks on Thursday, when the S&P 500 and Nasdaq ended down 1.1% and 1.4%, respectively. At the time of writing, US stock futures were in the red.
“Ethereum is down significantly and should remain volatile over the weekend,” said Oanda senior market analyst edward moyaIn a note seen by Benzinga.
Ethereum “still remains vulnerable to further selling in the short term, especially as traders await next week’s FOMC decision. Significant weakness with tech stocks is also weighing on crypto in general as bitcoin approaches $20,000″. level has fallen.”
Michael van de Poppe Said that till the next meeting of America federal Reserve, “Market will be down, pricing at worst” and a rate increase of 100 basis points.
Seems clear to me; Wait until the next Fed meeting and probably by then the markets will be down, at worst and pricing in 100 bps.
— Michael van de Pope (@CryptoMichNL) September 15, 2022
Federal Open Market Committee (FOMC) is scheduled to meet again on 20-21 September.
The September 30 option expiration is “critical” for ETH futures traders, with approximately $8 billion worth of options at that expiration, 75% of which are call options. Kaiko Research.
Ethereum Options Volume for September 30th – Courtesy Caico Research
“For the September 30 expiration, the strike price of $5,000 has the highest volume of all expirations, most of which are calls. ETH would have to more than triple to reach this strike, and it appears That these options will become useless,” the market intelligence provider said.
willy woo said that a “significant” amount of ETH flowed into exchanges leading up to the merge.
The analyst tweeted, “Was this for the exchanges to deal with a technical issue? or to dump?”
A significant amount of ETH went to the exchanges leading up to the merge.
Was it for the exchanges to deal with a technical issue? Or to dump? pic.twitter.com/GNGgjvxCrf
— Willie Woo (@woonomic) September 15, 2022
Justin Bennett Shared an ETH chart and said that the second largest crypto is “testing the neckline”. “If it breaks the target is $800,” the trader said on Twitter.
$ETH Testing the neckline.
— Justin Bennett (@JustinBennettFX) September 15, 2022
The neckline refers to the support or resistance on the head and shoulders pattern, which is used to identify areas where to place orders.
Read further: Ethereum (ETH) Sees $174M Liquidation After Merger as Price Drops