Trader activity weakens ahead of Ethereum update

by in Cryptocurrency News

ETH

This coming Thursday, September 15, the Merge solution will be integrated into the Ethereum software, thanks to which the network will move to the Proof of Stake consensus. The activity of traders in anticipation of this event is reduced.

Ethereum's underlying asset, the ETH token, is trading on Tuesday at $1,720. Monthly, Ethereum lost more than 13% in value.

Bitcoin is stagnating but still holding above $22,000. The coin surged to $22,379. Leading altcoins are also trading in a tight range.

Binance Coin (BNB), XRP and Cardano (ADA) sank about 0.5% to $292, $0.354 and $0.501, respectively. The capitalization of the crypto market on September 13 rose to $1.068 trillion.

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The ether rally that kicked off in July was the result of hype among investors waiting for the activation of the Merge fork. As soon as this event ceased to generate interest from traders and social media users, ETH immediately found itself in a bearish zone.

The head of the research division of CoinShares, James Butterfill, drew attention to the weakening interest of institutionalists in crypto funds focused on the largest altcoin.

During the week, investors withdrew about $62 million from such instruments. This suggests that large players are preparing for a rollback of ETH almost immediately after the update of Ethereum.