Ethereum’s growth and upcoming mergers are topics that have attracted most crypto attention lately. Ahead of the special event, on-chain data recorded an increase in the exchange’s whale address holdings.
Merge: On-Chain Review
From Blockchain Analytics Firm Data from Sentiment shows that the holding gap between non-exchange and exchange addresses has narrowed.
Over the past 3 months, some whale addresses holding large amounts of ETH have sent their holdings to exchanges. This resulted in an 11% drop in non-exchange wallets, while exchange-based wallets increased by 78%.
However, although the data on the chain often has a certain lag with the market price reaction, it is also one of the reliable indicators that investors refer to when making decisions. Best decision for yourself, especially with Ethereum being quite sensitive right now.
Considering on-chain metrics can be well-prepared for investors and traders, especially when the market is flooded with FOMO.
It may not mean rebound
sentiment The data shows a relatively large amount of ETH circulating on exchanges, which tends to reflect negative sentiment and expectations of lower prices in the short term. As a result, they will sell their holdings, inadvertently creating a strong emission pressure on ETH.
The highly anticipated Merge is scheduled for September 15-16. The development team recently announced that the testnet Goerli has been successful – Goerli is the final tesnet integration before major changes to the mainnet.
According to CoinMarketCap statistics, ETH surged by over $2,000 before correcting around $1,500 (at the time of writing).
Price declines can be explained by general market conditions, macro conditions and many other factors. In addition, the latest speech by Federal Reserve Chairman Powell yesterday may have contributed to the doom for the global financial industry.
As the Federal Reserve Chairman emphasized the authorities’ commitment to lowering inflation with a target of 2%, more aggressive measures may be taken in raising interest rates in order to curb inflation.
The market arrived quickly after the speech and prices fell overall. Bitcoin has lost 4% in the past 24 hours and is currently trading at the $20,000 mark.
The euphoria and psychological euphoria surrounding the bullish aspect of ETH before the merger shows no signs of cooling, despite recent price declines.