is on the verge of collapsing Hits a new multimonth low QuoteCoin
New York City: Intraday volatility is one of the most essential indicators or metrics for digital assets since it directly influences speculative traders’ demand for an asset and is thus one of the most crucial. The price performance of Ethereum during the last several weeks has been the weakest it has been throughout the course of the previous few months.
There is no more volatility. After the second-largest cryptocurrency on the market managed to outperform Bitcoin and other assets despite the problematic conditions on the cryptocurrency market, the market experienced a correction shortly after the successful implementation of the Merge update, which resulted in a massive 30% price reversal. Almost no one anticipated this massive reversal, which occurred after the correction we saw after the successful implementation of the Merge update.
Unfortunately, the decline was able to wipe out the positive performance of Ether that we had seen during the month of August, and as a result, the asset’s profitability dropped to the level of the industry average. This tendency was most likely the impetus for the money drain from Ethereum, which generated this weak phase for the asset. As a result, this anemic period was caused. What does the future hold for Ether? Historically, low volatility times have a significant impact on the amount of money that flows into digital assets. As a result of the weak market circumstances, we will either see a continuation of the trend that is moving sideways or another leg down developed.
If new money are poured into Ethereum, then only a price reversal in the upward direction will be conceivable. However, it is difficult to provide a rational explanation for the rapid increase in the amount of money being invested in Ethereum. As a result, extended consolidation is the only scenario that seems to be appropriate for ETH at this time.
