© Reuters. Ethereum Slides More Than Bitcoin, Dogecoin After ‘The Merge:’ Analyst Says ‘Things Look Pretty Ugly’ Right Now
Major coins traded sharply lower Sunday evening as the global cryptocurrency market cap dropped 4.55% to $929.5 billion at 8:21 p.m. EDT.
Why It Matters: Ethereum and Bitcoin lost 24% and 11% of their respective values over the last seven days.
The two largest cryptocurrencies were in the red on Sunday evening even as U.S. stock futures were marginally higher at the time of writing.
Traders are looking forward to monetary policy decisions from the U.S. Federal Reserve and the Bank of Japan in the fresh trading week.
Commenting on the decline in Ethereum price after the “great success” that was the Merge, Lark Davis, a notable cryptocurrency investor tweeted, “Shame about the price action, but just like a [bitcoin] halving the effect is not instantaneous.”
The #ethereum merge was a great success and a huge moment for the chain!
Shame about the price action, but just like a #bitcoin halving the effect is not instantaneous.
— Lark Davis (@TheCryptoLark) September 18, 2022
Justin Bennett predicted the first part of Bitcoin short liquidations around the 20,100 levels on Sunday. The cryptocurrency investor tweeted, “pump incoming.”
First part of those short liquidations here at 20,100.
More to come.$BTC #Bitcoin pic.twitter.com/PS798moiym
— Justin Bennett (@JustinBennettFX) September 17, 2022
In a more recent tweet, Bennett took a contrarian stance and said he should have “stayed bearish.”
I remained bearish in the sense that I still have part of my $ETH short from $1,708.
But I did think we’d see more of a bounce early this week. And we still might, but things look pretty ugly atm.
— Justin Bennett (@JustinBennettFX) September 18, 2022
“But I did think we’d see more of a bounce early this week. And we still might, but things look pretty ugly [at the moment].”
Alternative.me’s “Crypto Fear & Greed Index” was at “Extreme Fear” going into a new week of trading. Last week, the index also reflected “Extreme Fear.”
OANDA senior market analyst Edward Moya said in a recent note, seen by Benzinga, that Bitcoin was lower as “risk appetite remains in hiding.”
The analyst singled out a release from the White House which outlined a framework to regulate cryptocurrencies last week and said it “hardly puts anything major in motion.”
“New goals for the [U.S. Securities and Exchange Commission] and [Commodity Futures Trading Commission] were expected, while the proposed regulation on eliminating illegal activity fell short of complete guidelines on how that will be achieved,” said Moya.
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