Second-biggest asset on network facing series of problems after Merge
One of the most important indicators or metrics for digital assets is intraday volatility, as it directly affects the demand for the asset for speculative traders. Over the past few weeks, Ethereum has been showing the most anemic price performance in the past few months.
Volatility is gone
The correction we saw after the successful implementation of the Merge update caused a massive 30% reversal that almost no one expected after the second-biggest cryptocurrency on the market managed to outperform Bitcoin and other assets despite the problematic conditions on the cryptocurrency market.
Correction, unfortunately, we negated the positive performance of Ether during August, and the asset’s profitability fell to the industry average. Such a trend was most likely the catalyst for fund outflows from Ethereum, which caused this anemic period for the asset.
What’s next for Ether?
Traditionally, low volatility periods highly affect inflows to digital assets, and we will either see a continuation of the sideways trend or another leg down formed due to the poor market conditions.
An upward reversal will be possible only when new funds are injected into Ethereum. However, it is difficult to find a logical reason for the sudden increase in Ethereum inflows, which is why a long-term consolidation is the only scenario that is suitable for ETH right now.
