Many people are already aware of the risks of trading or holding cryptocurrencies. Even those not overly concerned by the crypto market have some knowledge about the dangers. The volatility of certain digital currencies, such as Bitcoin and Ethereum, is why many individuals and firms seek ways to maintain the value of their assets.
The Ethereum whales are no exception to this fact. Seeing the drop in the holdings of non-exchange addresses, ETH whales decided to move their holdings to on-exchange addresses.
A report showed that in the last three months, there had been an 11% drop in the assets of Ethereum in non-exchange addresses. Meanwhile, there was a whopping 78% in the holdings of whale on-exchange addresses.
Top ten exchange and other wallets. Source: Santiment
Ethereum Merge And Its Price
One of the most significant events ever carried out in the crypto industry is the Ethereum 2.0 upgrade. Moreover, since the creation of the blockchain, there hasn’t been a more significant event than the upcoming merge. Through this event, Ethereum proof-of-work mining system will be moved to that of proof-of-stake after the upgrade.
The end of the Merge signifies the successful completion of phase 2 of 3 stages of the migration into the PoS system. Ethereum began the migration into the PoS consensus in December 2020. The process started through the introduction of a chain called Beacon. This was regarded as phase 1 of the transition.
Phase 2 of the migration, the Ethereum merge, was slated to complete in 2021. Somehow, the plan became abortive due to certain delays in the process. This outcome led to the shift in the schedule, bringing it into the Q3 of 2022.
According to the community, the last of the transition will be the most significant of all three phases. This is because it’s intended to activate some vital features, including reducing the energy consumption of the blockchain and sharding.
As per reports from the community, the merge process is already past 95%, considering the date scheduled for the event. This will take place following the successful completion of the Goerli test net.
Somehow, the news about the merge, as of July this year, positively impacted the price of the blockchain native token, Ether. This impact brought its price to a 6-month high of approximately $2,000. Unfortunately, although this was an excellent bullish price movement, it was an abortive move to hit the critical resistance mark at the time.
Data from then till now revealed a plunge in the price of several altcoins, including Ethereum. Moreover, sentiment on the market is also at a low.
Ethereum falls below $1,550 l ETHUSDT on TradingView.com
This is getting more glaring as the merge draws even closer. Additionally, there has been a rapid reduction in the holdings of Ethereum whales.
Featured image from Pixabay, chart from TradingView.com