The long-awaited “Merge” update on the Ethereum front has finally been successfully completed. Despite this successful update, Ethereum whales chose an interesting method. During the recent selling pressure, many whales started to issue their ETH tokens.
In the last six days, addresses holding between 1,000 and 10,000 ETH have disposed of 2.24% of their cumulative holdings, resulting in a notable increase in selling pressure given their relative size in the market.
🐳 The #Ethereum #merge on 9/15 has brought on a shift in large address behavior. In the past 6 days since the shift to #proofofstakeaddresses holding 1k to 10k $ETH have dropped 2.24% of their cumulative holdings. 100 to 1k addresses have dropped 1.41%. https://t.co/qdOVcdDjgC pic.twitter.com/fcFy8hTUGD
— Santiment (@santimentfeed) September 21, 2022
Despite Ethereum’s high liquidity and one of the largest market capitalizations in the market, market makers do not deny the large sell-side trading volume that affects the price of the asset.
The data provided by Santiment makes it clear that the pre-Merger accumulation was mostly speculative and investors did not intend to hold the asset after the update as such a rapid increase in selling pressure could not be entirely natural.
The ‘sell as news comes in’ tactic was often suggested weeks before the Merger date. However, just days before the update, the sentiment had changed to “buy the news” for undisclosed reasons, producing an unexpected result.
This change in the minds of investors was also clearly seen when Ethereum increased by more than 10% a few days before the update. Unfortunately, shortly after the PoW algorithm became obsolete, Ethereum started to lose its value rapidly in the market.
ETH has dropped below the 50-day Moving Average and is no longer in an uptrend. Other technical details don’t suggest very good results either. Trading volume remains stable, suggesting that the trend has not subsided yet, and a drop to new lows is highly likely, especially if the cryptocurrency market does not recover in the foreseeable future.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.