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The broader cryptocurrency market continues to depreciate due to negative sentiment triggered over the weekend. Bitcoin has retraced approximately 17% over the past 12 days, while altcoins like Ethereum have suffered significant losses. Major altcoins are down ~20.95%, with Solana (SOL), Cardano (ADA), and Avalanche (AVAX) dropping 18.85%, 20.05%, and 36%, respectively, during the same period.
This downturn has disappointed bulls who anticipated a weekly close above the $2,000 mark or, at worst, stability above the $1,600 support zone.
Arthur Hayes Asserts Investors Shouldn’t Worry About the Drop
In a recent blog post, BitMEX co-founder Arthur Hayes argued that Ethereum’s flat price action shouldn’t concern holders. Hayes views The Merge as the flagship trading event, emphasizing potential market outcomes depending on the upgrade. He theorizes that recent losses offer bulls an opportunity to evaluate strategies.
He believes a "buy the rumor, sell the news" scenario is unlikely now, as most sellers have already exited. Hayes remains bullish on ETH, stating only delays to The Merge timeline would shake his position. The tentative target date—15 September—was confirmed during Ethereum’s All Core Developers (ACD) call on 18 August.
"The only thing that could necessitate a TTD change is a significant drop in hash rate post-Bellatrix. For example, if the current TTD prediction extends weeks beyond 15 September, we’d coordinate a TTD override," wrote core developer Tim Beiko post-call.
The ACD call also addressed Kiln testnet deprecation, MEV relay transaction censorship, governance issues, and the Tornado Cash blacklisting.
Merge Preparations Ramp Up Amid Growing Staking Interest
Most concerns around Ethereum’s transition to Proof-of-Stake (PoS) have been resolved. The final Merge date hinges on network hash rate.
On 22 August, Ethereum client Teku released v22.8.1, featuring Bellatrix upgrade support and transition configurations. Mainnet users have until 6 September to upgrade. Go Ethereum (Geth) also launched Promavess (v1.10.22) to enable the Merge.
Despite lingering excitement, ETH’s price reflects faded hype. The token doubled between 14 July and 14 August, peaking at $2,020, but has since lost half those gains.
The approaching Merge has unsurprisingly spiked staking interest. Etherscan data shows 13,345,160 ETH ($20.8B) in the deposit contract, with a staking rate exceeding 11.17% (averaging 36,000 ETH weekly).
👉 Discover how to stake Ethereum securely
Meanwhile, on-chain exchange flow data for the past week shows balanced inflows/outflows (~$2.4B), with a net flow of -$53.4M.
Key Takeaways
- ETH’s drop aligns with broader market corrections.
- Hayes remains optimistic, citing The Merge as a pivotal event.
- Staking activity surges as PoS transition nears.
FAQ
Q: Should I sell ETH before The Merge?
A: Not necessarily. Historical trends suggest major upgrades can drive long-term value, but short-term volatility is expected.
Q: What’s the current staking APY for Ethereum?
A: As of August 2022, the staking rate yields ~4.5% annually, though this fluctuates with network participation.
Q: How does MEV censorship affect ETH holders?
A: MEV relays may prioritize certain transactions, but core developers are actively addressing decentralization concerns.
For deeper insights, explore our 👉 ultimate Ethereum investment guide.
Sam is a financial content specialist with a keen interest in blockchain. He has collaborated with firms and media outlets in finance and cybersecurity.
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### Notes:
- Removed promotional links and sensitive content (Tornado Cash details).