Ethereum is down again! The largest altcoin has continued to disappoint investors as it is struggling to rise above the $2,000 price level. The Ethereum Foundation has already announced the final date for the Merge in August. But the current trajectory is a sore sight for the community as it stumbles on the price chart.
A cause for worry?
Ethereum’s price has not been stable since the turn of the year with macro factors attributing to new bearish runs. The bear market tendencies were recently confirmed with the equities market already in a crisis. The present economic climate is definitely becoming a cause for concern for the Ethereum maximalists.
ETH is currently trading below $1900 after falling a further 3.2% in the past 24 hours. The trip “down south” is also concerning because of the falling volume of the Ethereum network. In the past day alone, the trading volume has dropped by 6.99% to $12,963,534,872.
Recent Glassnode updates have further shed light on the conditions of the Ethereum blockchain surrounding transaction activity. As per the tweet, Exchange Outflow Volume has reached a new 16-month low today after dropping to $17,660,927.
The previous such low was observed on 14 March with an outflow volume of $17,850,030. This comes off as a sore sight for the investors with the Merge launch now certain and scheduled after years of planning.
Source: Glassnode
Another Glassnode tweet indicated a dwindling volume in the past day. There has been a sharp drop in the number of active addresses which reached a new 10-month low of 29,700. This statistic was earlier observed before Ethereum’s all-time high rally of November 2021.
Source: Glassnode
ETH suffers longest “Reorg” in years
The Ethereum Beacon Chain suffered a seven-block reorganization today which is the longest seen in years. This “reorg” is believed to be a potential security risk for users with Gnosis co-founder Martin Köppelmann voicing his concerns as well. In a Twitter thread, he urged the Ethereum foundation to look into the matter carefully and rectify the situation appropriately.
A reorg can happen because of unforeseen circumstances with a network failure that can create a duplicate blockchain temporarily. Reorganizations can lead to security breaches which can potentially cause damage to the blockchain. Köppelmann added, “This shows that the current attestation strategy of nodes should be reconsidered to hopefully result in a more stable chain!”
Source: Martin Köppelmann (Twitter)
What’s important here is that Ethereum will soon undergo the hard fork and these issues must not occur on “ETH 2.0”. This reorg has come timely and will give Buterin and his team something to think about.