Ethereum was down more than 10% today. Is it time to buy?

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After jumping nearly 40% in the past 30 days, the leading crypto smart contract platform may be suffering from a case of “buy the rumour, sell the news” regarding the Ethereum merger.

Key points

  • The local Ethereum blockchain coin ETH is down more than 10% today to $1,370.84 in the past 24 hours, according to CoinMarketCap.
  • The price of the coin had hit $1,654.43 over the past month following the developers’ announcement that the Ethereum merger could go live as early as September 19.
  • The core team of Ethereum blockchain developers has been working to transition the entire system from its current Proof-of-Work (PoW) protocol to an eco-friendly Proof-of-Stake (PoS) model.
  • Once complete, this migration (known as the Ethereum Merge) will increase the scale, speed, and throughput of the blockchain while reducing transaction costs.

Over the past 30 days, the price of Ethereum’s in-house cryptocurrency Ether (ETH) has soared nearly 40% on news that the project’s long-awaited shift from its PoW method for validating transactions to a model More energy-efficient PoS could happen. before September 19.

However, the best crypto blockchain for smart contracts may see some “buy the rumour, sell the news” activity as ETH fell more than 10% to a low of $1,370.84 per coin. on cryptocurrency exchanges. This is down from its 24-hour high of $1,531.00 according to crypto-tracking website, CoinMarketCap. This is roughly double the decline of the broader cryptocurrency sector at press time. In contrast, the 24-hour price decline for Bitcoin (BTC) was 4.95% and 6.6% for Dogecoin (DOGE).

It is widely believed in the crypto industry that the Ethereum merger will dramatically increase the number of transactions per second that the Ethereum blockchain can handle, while shortening settlement times and reducing congestion and transaction fees for users.

However, the migration of the PoW consensus model from Ethereum has been ongoing for several years and has been plagued with repeated shutdowns and restarts in an effort to keep the network running while upgrades are underway. Some developers have compared it to rebuilding a car’s engine while driving the speed limit on a highway.

Is it time to buy Ethereum?

Even though the Ethereum upgrade is experiencing another delay – which has not officially happened as far as we know – the Ethereum blockchain has a lot of potential benefits. It currently supports the most development apps in the crypto industry. Ethereum is also the preferred platform for many still popular use cases, such as decentralized finance options and NFT transactions, despite the current crypto downturn.

It is important to note that this is not financial advice and investors should always do their own research before putting money into any investment. However, Ethereum is a top-notch crypto asset – with or without the Ethereum merger – and its price is 72% off its all-time high from last November. Right now, the timing and price may work for anyone thinking of considering dollar cost averaging in Ethereum.

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