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Ethereum to Avoid $30 Billion in Selling Pressure Only 2 Years After Merge Update

Tue, 09/13/2022 - 08:45
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Arman Shirinyan
Ethereum market makers will no longer need to battle $30 billion in selling pressure every two years
Ethereum to Avoid $30 Billion in Selling Pressure Only 2 Years After Merge Update
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According to the most recent Arcane Research data, Ethereum miners added around $30 billion in the cryptocurrency to their wallets in the last two years thanks to ETH mining operations. With the Merge update looming, the market will no longer face billions worth of selling pressure every year.

Should investors be happy?

Billions worth of selling pressure from a certain entity of traders is always a negative factor for an asset's performance on the market, especially if the coin's liquidity is problematic or relatively low.

Considering Ethereum's ability to absorb large selling and buying volumes, the absence of $30 billion in selling pressure in only two years should most certainly help with the positive performance of the cryptocurrency on the market.

But the lack of selling pressure from Ethereum miners will be partially replaced with validators' profits from Ethereum staking, which are still singificantly less than profits from mining operations.

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It is also important to notice that the lack of Ethereum network usage would have affected the mining's financial efficiency if the PoW algorithm were still active.

Ethereum losing momentum

Only a few days prior to the Merge, Ethereum's price performance was showing exceptional results with a short-term 20% rally, while most digital assets were losing up to 7% of their values.

Unfortunately, the situation has changed, and Bitcoin, Solana and other assets have entered a short-term bullish cycle, but not the second biggest cryptocurrency on the market. The main reason could be tied to the technical migration to different networks or the lack of motivation to actively trade the asset, which might potentially face some technical issues during the upgrade.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.