Can someone explain to me why did ETH drop after the merge?

[Captain Corporate]

It looks like all the signs for it to go up was there, and for some reason it went down. Normally when something like this happens, the price goes up and even about this, back in 2020 december the price went up because phase 0 of this started, even caused all the coins to go up at the time, we were hyped about everything back then and we hyped this as well.

Merge causes the miners to no longer mine and sell it, it causes people to stake and buy more to earn more, so not only it got rid of a reason to sell, but it actually gave a reason to buy, and yet people are selling their ETH, why? I am checking to see a logical reason, but so far I have failed to find a logical reason for it. By all means this could have been the start of the bull run, its such a great thing and for some reason people just disliked it, why?

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[nurilham]

The reason is simple, it is because Bitcoin price drops.
You must know that ETH price mostly follows Bitcoin's trend. If Bitcoin price drops, ETH price probably decreases as well although there is positive news about it. I think ETH price will begin to increase again if Bitcoin price is starting to increase again after the current drops. So, don't so much worried about the reason why no significant increase after we have ATH Merge.

[samcrypto]

There’s no hype during the merge because it happened already right before the update which is normal in this market, aside from this the market trend is not that good and we are still on a bear trend and there’s no other way for ETH but to follow the trend.

The merge is not a failure, it may take time before we feel the real result of that merge but I’m sure it will happen. Wait for the market to recovers, don’t panic and just keep on buying, cheaper price for ETH is a good opportunity to accumulate.

[Xal0lex]

Everyone expected explosive growth after the merger, just as everyone expected growth after bitcoin's halving. People started buying ETH to make money on the event. Merger happened, nothing important happened in ETH price, consequently people began to get rid of ETH, large amount of coins was sent to exchanges again and this caused the price to go down. Everything is standard and such scenarios in cryptocurrency are not rare. People buy assets in anticipation of some kind of event and then a dump occurs after that event.

[milewilda]

The reason is simple, it is because Bitcoin price drops.
You must know that ETH price mostly follows Bitcoin's trend. If Bitcoin price drops, ETH price probably decreases as well although there is positive news about it. I think ETH price will begin to increase again if Bitcoin price is starting to increase again after the current drops. So, don't so much worried about the reason why no significant increase after we have ATH Merge.

Most of the time on which the current market trend will really be dragging off everything which that recent ETH merge or update didnt really make out some significant hype or interest which for it to cause for its price to rise up but instead it did really make out some significant drop which everybody wasnt really been expecting since everytime we do hear out about certain update or news then we do
usually accumulate coins as much as we could yet cant really be removed on someones mind that price might be shooting up afterwards or when the update is done.
We do have that kind of saying about "SELL the NEWS" where it did really happen but it eventually continues after the merge which would really boggle
up everyones mind on what the heck is happening.

[Scripture]

You sell the news, this is why many took their profit and this is the result.
We cannot expect an instant pump after the update, usually it will take months before we see progress and you should already know this because this is not new in cryptomarket.

[FinneysTrueVision]

Up until now Ethereum is still mostly vaporware. There are many interesting things you can do with smart contracts but it's still mostly scams, pump and dump tokens, monkey jpgs and stuff like that. There was a lot of marketing and hype surrounding the merge but now that it actually happened there is nothing useful to do for most people besides speculating on price.

[GreatArkansas]

The reason is simple, it is because Bitcoin price drops.
(....)

It's really the market, you just can't say Bitcoin. Because the event we had is about Ethereum and for me, even after The Merge event and Ethereum pumped, I expect that Bitcoin will pump too. But we went on the opposite side and the whole cryptocurrency market went down.
I am expecting this before, the pump happened already before the event and the sell of will happen after the event, "buy the news, sell the rumors".

[OgNasty]

It is pretty common for investments with big events happening to see a runup in price before the event followed by a selloff after.  It's commonly referred to as 'Buy the rumor, sell the news' and is exactly what occurred here.  I suspect the pain won't be over until the ETH2 coins can be withdrawn from the staking contract and those investors are able to cash out.  I believe the price was about 75% lower when a majority of those funds were staked, so I suspect that will lead to an even bigger drop as profit taking takes hold.

[Almasani]

Many miners have sold mining equipment because of the change in the Ethereum concept. Ethereum merge of course makes miners become disappointed with Ethereum at this time. Of course, by not being able to mine, the amount of Ethereum will be increasingly scarce, so people think the price of Ethereum will increase. But on the other hand, if Ethereum is currently still being tinkered with by its developers, then there is a high possibility that the same thing will happen in the future. I think Bitcoin is one of the current solutions. But if Bitcoin follows in Ethereum's footsteps, there is a possibility that Bitcoin will no longer be of value to investors. Maybe we need to understand the true meaning of decentralization.

[DudeAtWork420]

It looks like all the signs for it to go up was there, and for some reason it went down. Normally when something like this happens, the price goes up and even about this, back in 2020 december the price went up because phase 0 of this started, even caused all the coins to go up at the time, we were hyped about everything back then and we hyped this as well.

Merge causes the miners to no longer mine and sell it, it causes people to stake and buy more to earn more, so not only it got rid of a reason to sell, but it actually gave a reason to buy, and yet people are selling their ETH, why? I am checking to see a logical reason, but so far I have failed to find a logical reason for it. By all means this could have been the start of the bull run, its such a great thing and for some reason people just disliked it, why?

ETH merger create a hype about ETH in the market. Many people was buying eth with a high price when the main crypto currency BTC was still in bearish. This was very predictable that something like this would happens because this was just a technological transformation of a network. This was a historical event for eth network but nothing significant for the price of eth to increase. People were just buying the hype.

[andulolika]

Could you explain why it would pump? Makes no sense, halving still years away, bitcoin dropping and on the side all the electricity expenses are no more, now can spend in yachts and lambos.

[ahmia39]

As Ethereum transitions to a Proof-of-Stake (PoS) transaction authentication mechanism, its daily issuance will drop drastically from around 13,000 ETH to only around 2,000 ETH. Ultimately, as staking activity picks up, the issue is expected to stabilize at around 5,000 ETH per day.
Ethereum's intrinsic supply burning mechanism is an important factor in generating high returns. Here, the base fee, which is determined in real-time using network congestion as its primary input, is burned while the validator award consists mostly of two variables: the tip fee, which is the fee incurred by the user for prioritizing the processing of a particular transaction, and the block subsidy, which is currently set at 2 ETH per block and is divided equally among all validators. The infographic below details all the factors needed to ensure high returns on Ethereum.

[bitcampaign]

hype over people selling ETH when news everywhere about the merger will make the price of ETH go up but unfortunately on the contrary the price of ETH drops drastically because those who buy early benefit from the news of the merger, but I think the crypto market hasn't entered a bull market yet so just wait for the time to come soon recover

[asriloni]

Buying rumour and sell for the news is real for now. Ethereum merge gives nothing big to the ethereum ecosystem. It was only fixing unlimited supply and no more. Staking was not offering decent APY for the stakers that's why they are prefer to stake stable token instead of ethereum. Ethereum miners are also feeling so bad to find a new token that's worthy to be mined. This time the bearish market has been ruining the hype from ethereum and whole of coins in the market. People can't even aware if such thing happened if the news has no impact to the price at all.

[blockman]

Everything is dropping today and I don't think that it's just all about the merge.

Could you explain why it would pump? Makes no sense, halving still years away, bitcoin dropping and on the side all the electricity expenses are no more, now can spend in yachts and lambos.

Usually if there are news like that, it's pushing people to buy the rumor and then will make them hold it for a while because of the positive result of it.
That was the expectation of many but it didn't go well. Anyway, I'll still hold it despite the news and everything because when the bull run comes, for sure it will be one of it.

[bitterguy28]

i think it is over expectations ? and over hyping in advertising and news that people who truly invest in Etehreum are afraid of sideway effects so they took the funds out instead of letting it sit there till the merge?

I am not that sure because I keep my Ethereum on hold till now but like many of us? we are disappointed about the result but will still believe the coin and keep holding till the true effect of the merging takes place in which maybe not this soon?

[jaberwock]

It looks like all the signs for it to go up was there, and for some reason it went down. Normally when something like this happens, the price goes up and even about this, back in 2020 december the price went up because phase 0 of this started, even caused all the coins to go up at the time, we were hyped about everything back then and we hyped this as well.

Merge causes the miners to no longer mine and sell it, it causes people to stake and buy more to earn more, so not only it got rid of a reason to sell, but it actually gave a reason to buy, and yet people are selling their ETH, why? I am checking to see a logical reason, but so far I have failed to find a logical reason for it. By all means this could have been the start of the bull run, its such a great thing and for some reason people just disliked it, why?

Huh what signs? I think what you see are only the excitement of the people or the hype. I know that can make the price go up but there is no guarantee that they will sustain that feeling and maybe those people gets discouraged right after the merge was done, that is why they dump their eth.

It's normal for every coins to go up in the month of December for some reasons and it has nothing to do with the merge. There is no need for them to sell their eth if they want to try staking. That will only delay their time. I believe that no one dislikes a bull run but even the price of eth didn't dump last time, I still don't think that we will witness a bull run.

[Silberman]

It looks like all the signs for it to go up was there, and for some reason it went down. Normally when something like this happens, the price goes up and even about this, back in 2020 december the price went up because phase 0 of this started, even caused all the coins to go up at the time, we were hyped about everything back then and we hyped this as well.

Merge causes the miners to no longer mine and sell it, it causes people to stake and buy more to earn more, so not only it got rid of a reason to sell, but it actually gave a reason to buy, and yet people are selling their ETH, why? I am checking to see a logical reason, but so far I have failed to find a logical reason for it. By all means this could have been the start of the bull run, its such a great thing and for some reason people just disliked it, why?

To me this is a case of “buy the rumors, sell the news” you are correct when you say that people were expecting for the price of ethereum to go up after the merge and as such they began buying ethereum in anticipation of this, however once the event happens you are not going to necessarily watch a positive movement, and once it became clear that ethereum was not going to go up in value then all of those speculators decided to sell their coins and this pushed the price of ethereum down.

[kawetsriyanto]

Everyone expected explosive growth after the merger, just as everyone expected growth after bitcoin's halving. People started buying ETH to make money on the event. Merger happened, nothing important happened in ETH price, consequently people began to get rid of ETH, large amount of coins was sent to exchanges again and this caused the price to go down. Everything is standard and such scenarios in cryptocurrency are not rare. People buy assets in anticipation of some kind of event and then a dump occurs after that event.

Indeed. It is because people don't really understand what the merge is. They think it is the same as BTC halving, but it is not.
People bought ETH because of the good issue about ETH development, sadly they don't know what exactly the development is. Since the merge is nothing to do with the price, surely there is no significant increase in ETH price. Well, people who bought ETH before the merge, must hold their ETH now. It is decreasing a lot along with the decrease in BTC price.