It would have been a bullish period for the second cryptocurrency by market Capitalization, Ethereum, after the migration from Proof of work to proof of stake but the reverse was the case. Many crypto investors bought the rumor but were not able to sell the news. This has caused a lot of concern for many lovers of Ethereum because it wasn't just the case of the migration to proof of stake, but also the reduction in the supply of Ethereum that was expected to push the price of Ethereum.
Presently, Ethereum has experienced a fall of above 15% since the migration. The general crypto market is in a downtrend but Ethereum seems to have fallen far above most of the other top projects.
Could the news and evidence that showed Ethereum 2.0 to be centralized be the cause of the huge sell-off observed a few hours after the migration? Or is it a case of the FED and their crypto-unfriendly news? There was huge hope that Ethereum 2.0 will console many investors but it now appears that the time for the harvest is still far. Again, the lack of clarity on how ordinary investors can benefit from Ethereum 2.0 without having anything to do with exchanges is also affecting people's view of Ethereum 2.0.
One thing I am very confident in is the fact that the POS migration will attract more investors to Ethereum. Institutional investors may come in because the POS of stake mechanism offers them another way to put their money to work and earn daily rewards from it. They will not have to worry about the environmental impact of setting up a node as it is with Bitcoin. There will also be more Ethereum in staking which will also increase the demand for the new POS coin. This is something I am very confident in and I believe it is a matter of time for Ethereum really to start.
The only concern now is the attitude of validators. If there are more greedy validators who want to live off the daily staking reward, there will surely be a negative effect of their constant dumping on the price action of Ethereum. Usually, when investors notice the constant dumping of staking rewards by validators, it creates panic in the market. The fear index rises and this is not favorable for tokens.
For now, I will just stay on the sideline and watch how things unfold. I will also DCA on Ethereum if I have the fund. Not financial advice though.