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Ethereum’s Merge on Sep. 15 turned out to be a sell-the-news event, which looks set to continue. 

Notably, Ether (ETH) dropped considerably against the U.S. dollar and Bitcoin (BTC) after the Merge. As of Sept. 22, ETH/USD and ETH/BTC trading pairs were down by more than 20% and 17%, respectively, since Ethereum’s switch to proof-of-stake (PoS).

ETH/USD and ETH/BTC daily price chart. Source: TradingViewWhat’s eating Ether bulls?

Multiple catalysts contributed to Ether’s declines in the said period. First, ETH’s price fall against the dollar appeared in sync with similar declines elsewhere in the crypto market, driven by Federal Reserve’s 75 basis points (bps) rate hike.

Second, Ethereum faced a lot of flak for becoming too centralized post-Merge.

Only five entities have produced 60% of the blocks so far. The biggest share belongs to Lido DAO, an Ethereum staking service, that has 4.19 million ETH deposited, or over 30% of the total amount staked into Ethereum’s official PoS smart

Keep reading this article on Cointelegraph.com.

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