Why didn't people sell before the merge? Did they think it wouldn't happen?
This has been hands-down the most ignorant view of the ETH-merge proponents. The floor of the currency is tied to the cost to mine. There's minimal cost to mine now. The price will fall. It's not a supply vs demand problem.
This is not true because of difficulty adjustment. If the price drops enough so miners are losing money, some of them quit, the difficulty adjusts downward, and the economics improve for the remaining miners.