The run-up to the Merge event of the Ethereum protocol saw a number of anticipation from members of the Ethereum community and broader crypto investors on how the coin’s price will be influenced positively.
This anticipation was cut short as the price of Ethereum post-merge has not been quite impressive.
Since the merge event, Ethereum has traded largely below the $1,400 resistance point and is currently trading at $1,323.52, atop a 2.53% growth over the past 24 hours according to data from CoinMarketCap.
Ethereum co-founder, Vitalik Buterin has made an attempt to explain this price slump in a recent interview with New York Time’s Ezra Klein.
“I think the post-merge price drops, I mean, really surprised me. They really surprised everyone. There is an expression, by the rumor, sell the news. And I’ve never really known how seriously that expression should be taken or how often that kind of pattern actually plays out in real life,” he said when asked for his opinion on the price drops.
“I guess, the reason why something like that would happen psychologically is that everyone gets very excited and confident running up to an event. But then when the event actually happens, it just feels, in retrospect, almost less significant than what everyone had been expecting going in. And then there’s this wave of disappointment, and the price of it ends up dropping a bit.”
To Vitalik, this is one explanation for the current performance of the Ethereum coin, and the second reason that can be attributed to this drop is the general market condition. To Vitalik, there is a pervasive onslaught in the financial world that is affecting more than just the crypto ecosystem.
The interview also saw the crypto leader emphasize how Terra founders attempted to manipulate the market in order to keep the prices of their coins stable. In his views, he believed those who lost to the protocol when it collapsed in May did not listen to the “Lots of smart people were saying, hey, this is fundamentally bad.
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