Ethereum Price Drops Below $1,500 After Successful Merge

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The long-anticipated Ethereum Merge has been completed, marking a historic shift from proof-of-work to proof-of-stake. From a technical standpoint, the transition went smoothly—networks remained stable, validators are active, and block production continues uninterrupted. However, market sentiment appears to be cooling off quickly. For the first time in over a week, ETH price has fallen below the $1,500 mark, raising questions about investor behavior post-upgrade.

ETH Dips Nearly 8% Amid Broader Market Pullback

According to CoinGecko, Ethereum (ETH) dropped nearly 8% in the past 24 hours, currently trading at around $1,490. This decline outpaces the broader crypto market, which saw an average drop of about 3%, while Bitcoin dipped approximately 2% during the same period.

Following the successful merge, ETH initially held steady near the $1,600 level**, showing minimal volatility overnight. But early this morning, prices plunged from roughly **$1,585 to current levels, reflecting a sudden shift in momentum. While some analysts expected a pullback after months of bullish anticipation, the speed and depth of the drop have caught many traders off guard.

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The "Sell the News" Effect Takes Hold

For months, the Merge was hyped as a transformative event for Ethereum—one that would reduce energy consumption by over 99%, improve scalability long-term, and potentially set the stage for future ETH value appreciation. However, as is common in financial markets, "buy the rumor, sell the news" dynamics may now be playing out.

Back in early August, blockchain analytics firm Glassnode highlighted derivatives data suggesting that sophisticated traders were already positioning for a post-Merge price drop. Their analysis showed increasing hedge activity among stakers—particularly on futures and options markets—indicating that experienced players anticipated a correction once the upgrade was confirmed.

This behavior aligns with classic market psychology: when a highly anticipated event occurs, investors who bought in advance often take profits. With no immediate follow-up catalysts like token unlocks or monetary policy changes, short-term momentum stalled, allowing downward pressure to build.

Centralized and Decentralized Platforms Dominate ETH Staking

Since late 2020, investors unable or unwilling to stake the full 32 ETH required to become validators have turned to third-party platforms—both centralized and decentralized—to participate in staking rewards.

Today, just four entities control nearly 59.3% of all staked ETH, raising concerns about centralization risks within the new proof-of-stake system:

In total, over 13.7 million ETH is now staked across the network—representing roughly 11% of the total supply. While staking participation reflects confidence in Ethereum’s long-term future, the concentration of power among a few major players has sparked debate over decentralization and network resilience.

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Not Everyone Is Celebrating: EthereumPoW and Miner Exodus

Despite widespread support for the Merge within the Ethereum core development community and much of the ecosystem, not all participants welcomed the change.

A faction of miners and supporters opposed the end of proof-of-work mining, leading to the creation of EthereumPoW (ETHW)—a fork of the original chain that continues to operate under proof-of-work consensus. This new network allows miners to keep using their GPU rigs to mine ETHW tokens.

Other displaced miners have migrated to alternative proof-of-work blockchains such as:

These networks have seen increased hash rate activity since the Merge, absorbing some of the computational power previously dedicated to Ethereum.

While ETHW and similar forks represent a small fraction of Ethereum’s original market share, they underscore an ongoing ideological divide in the crypto space: decentralization vs. sustainability, and miner rights vs. environmental responsibility.

Core Keywords and Market Outlook

Key themes emerging from this pivotal moment include:

These keywords reflect both technical developments and shifting investor sentiment. As Ethereum moves into its next phase—focused on scaling via rollups and upcoming upgrades like Surge, Verge, and Splurge—market attention will likely shift from short-term speculation to long-term utility and adoption metrics.

Frequently Asked Questions (FAQ)

What caused ETH price to drop after the Merge?

The drop appears to be driven by profit-taking after prolonged bullish sentiment. Many traders bought ETH in anticipation of the Merge, and once it succeeded, they sold to lock in gains—a classic “sell the news” scenario.

Does the price drop mean the Merge failed?

No. The Merge refers to a consensus mechanism change—not a price catalyst. Technically, it was a success: Ethereum now uses over 99% less energy and operates under proof-of-stake. Price movements are influenced by market psychology, not network performance alone.

Is staking ETH still safe with so much concentration?

While Lido and major exchanges dominate staking, decentralized alternatives are growing. Users can also run their own validators or join smaller pools to reduce reliance on centralized entities. Long-term, Ethereum developers aim to improve distribution through protocol-level incentives.

Could Ethereum regain $1,600 or higher?

Short-term recovery depends on macroeconomic factors, BTC trends, and on-chain activity. If DeFi usage and Layer 2 adoption continue rising, upward pressure could return. However, without strong catalysts, sideways movement may persist through Q4 2025.

What happens to Ethereum miners after the Merge?

Most miners either switched to Ethereum Classic (ETC), Ravencoin (RVN), or other GPU-mineable coins. Some exited the market entirely due to declining profitability.

Will there be more Ethereum upgrades after the Merge?

Yes. The Merge is just the first phase of Ethereum’s multi-year roadmap. Upcoming upgrades include sharding (“The Surge”), stateless clients (“The Verge”), and account abstraction (“The Purge”), all aimed at improving scalability and efficiency.

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