Geoffrey Smith

Investing.com — Europe’s second-most valuable cryptocurrency continues to slide on Friday as traders fret about delays in a significant change to the currency that will make it more scaleable.

Vitalik Buterin was the main architect for Ethereum. This switch will reduce the Ethereum network’s energy intensity to over 99.9%. It also removes a major obstacle that prevents it from processing large transaction volumes.

This news suggests that Ethereum, like other cryptocurrency assets, is a momentum-driven asset and must wait patiently for the greatest value driver in its investment case. The anticipation of “Merge,” the key to Ethereum’s future competitive edge, has been the reason for speculative attention in Ethereum over the last year. It is believed that Merge will provide it with a significant advantage as they compete in the market.

Ethereum fell to a low of $1717.66 over the past 14 months, before regaining its gains to trade at $1773.70 (0710 GMT) by 3:10 AM ET.

The rising U.S. trend and most importantly the fall of TerraUSD, the underpinning network algorithmic stabilitycoin, has put pressure on cryptocurrencies.

In recent days, sentiment towards alternative coins has been hurt by Ethereum’s troubles. Over the past week, Ethereum has dropped 12% while it has declined 19%. Bitcoin on the other hand, lost only 3.5% in the past week. This is due to Bitcoin’s greater liquidity which makes it an attractive option for investors looking for a refuge from a volatile market. However, Bitcoin is trading at its lowest level since December 2020.