After switching to the «green» blockchain, analysts declare Ethereum’s critical situation

Since September 15, the second-largest cryptocurrency has not stopped losing ground. Theresults of The Merge's global update showed that crypto whales used market conditions to sell Ethereum en masse. Statistics from the analytical publication Whale Alerts show that over the past 48 hours, crypto-miners have sold ETH worth about $ 2 billion. The ETH quote has approached $ 1430, and in light of this, industry experts suggest that ETH will fall to $ 1000.

Most crypto analysts assume that a significant decline in the value of Ethereum is unavoidable. Although the Ethereum ecosystem has undergone a long-awaited update, it did not have a positive impact on the market. According to Merkle Science principal researcher Coby Morgan, Ethereum’s transition to a PoS consensus mechanism will make ETH more centralized and vulnerable to government interference and censorship.

Morgan suggested that the high cost of validators could lead to the consolidation of nodes among large cryptocurrency companies such as Binance, Coinbase, and Kraken. According to the researcher, the largest ethereum holders will be «subject to the whims of governments around the world,» and therefore ETH risks becoming a digital asset fully controlled by the authorities. «Cryptocurrency platforms will have 2 options: either to comply with the requirements of governments or to risk being sanctioned,» the researcher emphasized.

Given the circumstances, many investors are interested in further actions of the US Federal Reserve. Earlier we reported that the US government and the presidential administration are working on the launch of the digital dollar, the country’s national cryptocurrency. The US wants to prepare for the issue of CBDC if the Treasury decides that the initiative is in the country’s interest. However, the final decision will be made by the Fed.