Ethereum has fallen below $1,900 as the Ethereum Foundation clears up merger speculation. It was recently rumored that the merger would reduce gas costs, but these claims have been somewhat dismissed.
Thursday saw Ethereum bearish as the asset extended its slide for a fifth straight day.
Ethereum hit a low of $1,823.53 today as the Ethereum Foundation commented on recent rumors surrounding the Merger, and its potential impact on gas fees.
The Ethereum Foundation has stated that “Gas fees are a product of network demand versus network capacity. Merge deprecates the use of proof-of-work, moving to proof-of-stake for consensus, but does not significantly change parameters that directly influence network capacity or throughput.”
Traders who recently bought into the rumored merge, helping send ETH to a three-month high earlier in the week, now appear to be slowly pulling back.
Ethereum’s relative strength was also down as the RSI broke below a support point of 60.32.
The index seems to be trying to get into this point today, and currently sits at 59.70. ETH is trading slightly higher at a point of $1,854.84 at the time of writing.