Let me tell you why this crash could really hurt ETH
ETH post merge was supposed to moon right?
The new Proof of stake is using 95% less energy than the previous Proof of work,
which is supposed to be good.
But the problem is that now the miners who used to mine ETH,
who were in the business of generating income from POW,
now face the potential of bankruptcy if they didn’t prepare for this transition.
Now you have a lot of ETH miners liquidating assets to not end up bankrupt.
Especially as miners compete to sell first,
as their income is being wiped away.
ETH stakers who locked their money in ETH 2.0 have a Stake lockup expiration,
This is 6-12 months after the merge happened when they can start selling their staked ETH.
Bear in mind this started in DEC 2020.
Now imagine these Stakers didn’t know when this merge was going to happen,
It would be in their best interest for it to be during a bull run,
Merge happens and they sell eth in a bull market at high prices.
But unfortunately the opposite happened,
These people who staked their ETH and waited years for this merge to happen,
They now will have the opportunity to sell in a recession,
Adding SELLING PRESSURE.
Some people think this is FUD,
and that there is enough volume for ETH to be bought back and absorbed,
Which may be true.
But currently now MACRO is not your friend,
This merge should’ve happened during a bull run,
Because here’s what your up against:
NASDAQ is weak as fuck already falling below support,
We’re in a very difficult macro market, why?
Because instead of the FED printing more fake money and helping everyone,
Which provides the market VOLUME and induces more blocks of buying,
That is no longer happening.
Instead of stimulus checks and fake money,
we are seeing liquidity and money being taken out of the markets,
And remembers price is more prone to fall if there is no buyers.
“Buy the rumour sell the news”
also plays a huge part in the additional decline.
All this is very unfortunate because I don’t believe ETH deserves this,
I think eth probably has one of the strongest systems for transactions at the lowest potential costs.
I guess this is just another GREAT BUYING OPPORTUNITY about to present itself.This post is based on this twitter thread.