Despite the updates occurring in the ecosystem, the Ethereum (ETH) price continues to drop. Analysts have warned that the ETH price could drop further. The leading altcoin is currently trading at $ 1,521.
Ethereum's Ropsten testnet was a milestone and a major success for the altcoin. The developers recorded 99% engagement and bid rates after fixing any issues that came up during testing. Ethereum developers implemented the much-anticipated The Merge update on the Ropsten testnet earlier this week. However, on Friday, they announced that they have decided to postpone the difficulty bomb, which raises suspicion among the Ethereum community. The Ethereum developers team has decided to delay the long-awaited update for 2.5 months. This led to the suspicion that the merger could not happen in August 2022. The news of the critical delay put some pressure on Ethereum price action and the leading altcoin lost momentum. Ethereum is currently below the 50-day EMA and analysts are predicting further declines in the short term.
Ethereum developer Tim Beiko noted that the Sepolia and Goerli merger could go live in three weeks and six weeks, respectively. Kraken CEO Jesse Powell said that Ethereum developers and the community are doing their best to complete the merge. The manager also added that he is not worried about delays. The community criticizes the delays. The developers did not officially give a specific date for the merger. However, Ethereum co-founder Vitalik Buterin echoed that the update could happen in August if no major issues arise. This raised concerns that the update would take more time. Thomas Jay Rush, one of the leading names in the industry, said that the delay looks bad for the community, but there is nothing they can do about it.
Bob Mason, a prominent cryptocurrency analyst, argues that Ethereum price should stay above the main support level at $1,460. If the selling pressure in the market continues, Ethereum could drop below $1,400. According to the analyst, Ethereum’s second major support level is $1,390 and ETH will continue to lose value in the short term.
The analyst, who uses the name Bitcrypto on Twitter, also believes that the Ethereum price can continue to fall. FXStreet analysts also mention that the ongoing sharp correction in the cryptocurrency market and the macroeconomic environment may further deepen the decline in the ETH price.