Ethereum Whales Rapidly Dropped Their Holdings After Merge, Here’s Why

Please fol­low and like us:
Pin Share


article image
Arman Shirinyan

Most of Ethereum sell­ing pres­sure was pro­vid­ed by retail sellers

Fol­low­ing the suc­cess­ful Merge update, large Ethereum hold­ers start­ed to rapid­ly redis­trib­ute their hold­ings on the mar­ket, which could have been the main source of large sell­ing pres­sure that pushed ETH’s price to the July level.

In the past six days, address­es hold­ing from 1,000 to 10,000 ETH have dropped 2.24% of their cumu­la­tive hold­ings, which, con­sid­er­ing their rel­a­tive size on the mar­ket, is a note­wor­thy spike in sell­ing pressure.

Despite the high liq­uid­i­ty of Ethereum mar­kets and one of the biggest mar­ket cap­i­tal­iza­tions, mar­ket mak­ers could not negate the mas­sive sell-side trad­ing vol­ume that then affect­ed the price of the asset.

The chart pro­vid­ed by San­ti­ment sug­gests that accu­mu­la­tion ahead of the Merge was most­ly spec­u­la­tive and investors did not aim to hold the asset after the update, since such a rapid increase in sell­ing pres­sure can­not be com­plete­ly natural.

Ads

The “sell the news” nar­ra­tive appeared on the mar­ket weeks before the Merge date. How­ev­er, only a few days pri­or to the update, the sen­ti­ment changed to “buy the news” for undis­closed reasons.

A shift in investors’ mind­sets was most like­ly the pre­cise rea­son why Ethereum ral­lied by more than 10% a few days ahead of the update imple­men­ta­tion. Unfor­tu­nate­ly, almost imme­di­ate­ly after the PoW algo­rithm became obso­lete, Ether start­ed to lose its val­ue on the market.

The tech­ni­cal per­spec­tive of ETH is also depress­ing since the asset has dropped below the 50-day Mov­ing Aver­age and is no longer in the uptrend. The trad­ing vol­ume remains steady, show­ing that the trend is not yet fad­ing, and we might see a drop toward new lows, espe­cial­ly if the cryp­tocur­ren­cy mar­ket does not recov­er in the fore­see­able future.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *