Ethereum Whales Move Holdings Onto The Exchanges Before The Merge

The Merge code is the key to the growth of Ethereum near time.

The Ethereum blockchain is set to undergo one of the most major modifications since its conception, as it switches from proof-of-work mining consensus to proof-of-stake (PoS).

The Merge date is set for September 15, following the successful integration of the Goerli testnet – the final testnet merger before the actual transfer. After the announcement of the Merge date, ETH had a bullish rally in July, climbing to a new six-month high of over $2,000 but failing to consolidate at the crucial resistance.

However, investors need to be wary of the current FOMO wave for ETH, considering on-chain indicators trading Ethereum. According to data from blockchain analytics firm Santiment, the gap between the top 10 wallets that do not have ETH on the largest exchanges and the ETH wallets on the top exchanges is gradually narrowing.

Over the past three months, many whale wallets with large holdings have sent significant amounts of ETH to exchanges. Where non-exchange wallets have dropped by 11% and exchange-based wallets have increased by 78%.

The influx of cryptocurrency onto exchanges often signals gloomy sentiment and is frequently done by traders looking to profit by selling their tokens, implying that whales expect the price to fall in the near future.

Many market analysts believe the Merge will be a case of “buy the rumor, sell the news.” If excellent news is predicted sometime in the future, the price will often rise in anticipation of that date, but not always afterward. The market rose in the aftermath of the Merge date confirmation, although it may eventually fall in price following the important event.

The September 15 event is significant for Ethereum, however, The Merge just represents a change in mining consensus. After the third phase is completed, key benefits such as increased transaction capacity, lower gas fees, and reduced energy usage will be realized.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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