Investor interest in the Ethereum (ETH) blockchain has surged amid hopes for an upcoming ETH merger.
Not long ago, ether surged to a two-month high after its developers successfully completed final rehearsals for the upgrade. The world’s second-largest cryptocurrency climbed to a high of $1,927 in early August, its highest level since early June.
ETH whales moved their holdings to exchange addresses, holdings have dropped recently to non-exchange addresses.
According to a report documenting activity over the past three months, ethereum assets in non-exchange addresses are down 11%. At the same time, the holdings of whale exchange addresses increased by 78%.
According to on-chain analytics firm Santiment, with Ethereum supply in top exchange addresses has increased as traders dumped their holdings on large exchanges during the 2022 market downturn.
Santiment wrote on August 3:
“Ether Ethereum’s top exchange addresses are holding increased supply, which makes sense for traders to dump their holdings to larger exchanges during the 2022 downturn. Note the top $ETH exchange address holdings A decline as a bullish signal.”
Top 10 based on early August estimates A total of 7 million ETH is held by each exchange address, which is the highest level since May 2021. Santiment also noted that the drop in address holdings on top ETH exchanges could be a positive price indicator.
What caused the ETH price surge?
July 2022, after multiple delays , the news of the merger ended up having a positive effect on the price of ether. It rose to a six-month high of around $2,000. While this was an excellent bullish price move, hitting a key resistance level at the time was a losing move.
Cumulative data from July to the present shows that the price of several altcoins has plummeted, including Ethereum. At the moment, market sentiment is not very good either.
This has caused prices to take a serious hit, although the merger is now closer than ever. The holdings of ethereum whales also dwindled rapidly.
The Ethereum 2.0 upgrade is one of the most important events happening within the crypto industry, and without a doubt, all eyes are on it. PoW) consensus mechanism is transformed into a proof-of-stake (PoS) mechanism, which will greatly reduce the carbon footprint of the platform and speed up the process.
The September merger will require the successful completion of Phase 2 of the 3-phase migration to the PoS system. The migration to PoS consensus mechanism started in December 2020. The process begins with the first phase, which includes the introduction of the beacon chain.
The second phase of the Ethereum merger was expected to be completed in 2021. However, due to certain delays in the process, the plan did not actually materialize. This resulted in a timeline shift, pushing it into the third quarter of 2022.
The final phase of the transition is obviously the most important of all three, as it is said to activate some important features such as reducing the energy consumption of the blockchain and sharding.
According to the report, taking into account the scheduled date of the event, the consolidation process is already over 95%. The merger process will take place after the successful completion of the GoerTek testnet.
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