By Laura Sanchez
Investing.com – Down 7.8% for the week and down 13% so far in September.
“The weight of sales occurred after the so-called ‘Fusion’. The token traded above $1,700 last Tuesday before falling to a low of just under $1,300 yesterday,” said Simon Peters, senior crypto asset analyst at eToro.
This Tuesday, the second largest cryptocurrency in the world is trading higher, trying to stay above $1,350.
“The Merger appears to have had some short-term impact on the price, with a significant drop immediately following. But if you scale it down to as little as seven days, observers will realize that the token is clearly moving in line with other risk assets in the face of new negative economic indicators,” Peters explains.
“The Fusion will not be judged by the performance of a few days”
“ETH’s drop in value over the past few days will be pointed to as evidence of the Fusion’s failure and overestimation, but like any investment and market, it will not be judged by a small snapshot of performance,” explains the eToro expert.
According to Peters, the Merger was a long-term change in the way the Ethereum network is governed and how it uses its resources. “The promise of a miraculous overnight turnaround is anathema to long-term sustainable development and should be treated with caution by any investor who sees it,” she stresses.
“ETH price has fallen below a recent support level of $1,400, but there is a much broader market fight at play that is distracting investors from significant network improvements. Price volatility will be is experimenting across the board in crypto assets thanks to major macroeconomic factors beyond its control, just as stocks are experiencing major sell-offs,” he adds.
“For investors considering their position at this juncture, those with a strong belief in the long-term use cases of crypto assets like Ether or Ether should ensure they are prepared for more volatility ahead, as history The economy doesn’t seem to have changed yet. But the long-term thesis of your investment should be a more important indicator than pure market movement.”