Ethereum: What ETH’s post-Merge price drop has to do with short-term gains

ambcrypto.com:

The long wait came to an end when the much-hyped Ethereum [ETH] Merge completed successfully. This development sparked community excitement, and Twitter was flooded with opinions about what would happen next.

After this, the next big upgrade, Shanghai, is expected to roll out sometime next year. The Shanghai upgrade will finally unlock the staked Ethereum present on the Beacon chain. 

Staked $ETH will continue to be locked on the Beacon Chain for another 6-12 months until the Shanghai upgrade — the next major upgrade after the Merge.

— The Moon | Carl (@TheMoonCarl) September 14, 2022

While much more is in store for the ETH network in the coming months, its recent price action did not correspond to the positive developments. Soon after the Merge, ETH’s price fell considerably, which sparked fear among investors.

Interestingly, CoinMarketCap’sdata revealed that ETH was the worst performer among the top 10 cryptos during the last seven days as it registered a more than 14% decline in its price. 

The crypto community had diverse opinions regarding the way to move forward. However, what could be the reason behind the recent downtrend.

Dan Lim, an author and analyst at CryptoQuant, published an interestingassessment regarding the same. When the ETH Merge completed, the price marginally climbed, and those who anticipated a drop in value ended their short positions.

He also mentioned, “Interestingly, after people exited their short position, the whale led to decline ETH.”

Source: CryptoQuant

That being said, several analysts are expecting ETH’s price to drop even further in the coming days. Justin Bennette, a famous crypto influencer, tweeted