Ethereum (ETH) price continues to fall after the Merge on September 15 as traders expected a drop below the $1,700 level will trigger shorts. Despite the anticipation surrounding the Merge, whales started selling their ETH holdings last month itself. The ETH price has reached an inflection point and a further fall below $1430 will be fatal.
Ethereum (ETH) Price Risks Falling to $1000
Ethereum has lost over $40 billion in market cap in a week and over $25 billion after the Merge. Whales used the most anticipated event in the crypto market to sell their ETH holdings before the price crashed.
Experts earlier predicted a fall in Ethereum prices leading up to the Merge. The ETH price has tumbled nearly 15% after the Merge as whales sold ETH worth over $1.5 billion in just two days. In fact, massive selling by whales has pushed the price to an inflection point, the support level at $1,430.
According to several crypto analysts, the ETH price can tumble to $1,000 if it falls below $1430. Crypto analyst Ali Martinez in a tweet said the ETH price dip below $1,460 could trigger a sell-off that sends the Ethereum price to $1,000.
Ethereum (ETH) Price Movement. Source: Ali Martinez
According to Whale Alerts, whales dumped over $1.5 billion in ETH in the last 48 hours. In fact, an unknown whale has transferred 240,099 ETH worth nearly $357.90 million to Binance. Moreover, several whales have made many ETH transfers, each worth nearly $50-$100 million.
Furthermore, a $2 billion Ethereum options expiry on September 30 is also disturbing. The Ethereum price will likely fall further. The ETH supply will also fall as Ethereum is now a deflationary cryptocurrency. The ETH supply will reduce with time due to the EIP-1559 burning mechanism. However, as per data, the supply has increased by 400 ETH since Merge.
Is Ethereum (ETH) a Security Now?
SEC Chair Gary Gensler hints that the Merge has made Ethereum a security. He believes all PoS cryptocurrencies or issuers allowing holders to stake their coins meet the criteria of security as per the “Howey Test”.
Nevertheless, Ethereum’s transition to PoS will be significant in the long term. The next steps in the Ethereum Roadmap are the Surge, Verge, Purge, and Splurge phases.