Ethereum and Bitcoin slip further throughout the weekend

Ethereum’s meltdown sugar spike on Thursday led to a dark weekend of red for both newly minerless ETH and top crypto Bitcoin.

Ethereum has fallen from its pre-merger perch of $1,580 to $1,335 at the time of this writing, after a steep drop of 6% in the hours following the merger and an overall drop of 15% on Sunday evening.

Bitcoin, meanwhile, fell to $19,414 on Friday, but saw a brief rally take it above $20,000 on Saturday. The boost was short-lived, however, with the largest cryptocurrency by market cap returning to its Friday lows as the weekend drew to a close.

Ethereum was down 22% for the week and Bitcoin 10%. The declines echo a similarly weak week in which broad economic measures — ranging from the consumer price index to traditional Nasdaq and S&P 500 market indicators — also fell.

But Ethereum’s fall in fortune following the merger belies claims by some analysts immediately after the upgrade that the impact of the merger on ETH’s value had already been priced into the market.

Prior to the conversion, some predicted a “melt surge,” but the momentary jump in ETH price quickly evaporated. Prominent Twitter crypto commentator Doctor Profit announced today that he has sold all of his Ethereum.

The weekend also brought news of the first “replay attack” targeting Ethereum and the recently forged EthereumPoW blockchains. Similar to the invalid blockchain parameter that briefly delayed the merge, this exploit was caused by the failure to verify the chain link ID to determine which blockchain a transaction was taking place on.

As for Bitcoin, its total market capitalization retreated towards its six-week low of $18,661 on September 6, territory it has not touched since late June. Bitcoin’s total market capitalization fell back below $375 billion on Sunday, a threshold last crossed on September 6 and not since July 13 previously.

For his part, Doctor Profit – whose main claim to fame predicts $18,000 as the “ultimate bottom” for Bitcoin as early as April 2021 – said “the bottom is forming” with a likely price range of 18,000. $ to $25,000 until next March.

But a lot depends on the next decision announced by the US Federal Reserve, he warns. While Doctor Profit estimates that Bitcoin’s price can withstand a 0.75 basis point increase in interest rates, a full basis point will mean “we see blood.”

“Once the FED decides on the big reset, we will all be fkd,” he tweeted.

The last Federal Reserve meeting in July yielded a 0.75% increase. The next meeting, scheduled for September 21, will likely bring another increase, with the main question being how big the increase is. Some expect Federal Reserve Chairman Jerome Powell to announce a full percentage hike.

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