The ETH whales are in motion. According to data collected by Santiment, major investors in the Ethereum (ETH) network are moving their holdings in the asset to exchange addresses.
The countdown to The Combine, an event in which the ETH mainnet will merge with the Beacon Chain and adopt the Proof-of-Stake (PoS) consensus technique, has begun. The Ethereum Foundation has stated that the event will take place between September 10 and September 20.
The merger, anticipated for years by network fans, has had a beneficial influence on the price of the world’s second-largest digital currency. Since the Ethereum 2.0 release date was announced on July 15, the network’s native currency has increased in value by 70%, according to TradingView, despite a recent market reversal.
However, this upward tendency might swiftly reverse owing to whale behaviour. According to data from analytics company Santiment, big Ethereum cold wallets have dropped their ETH holdings by 11% over the last several months. They have accomplished this by transferring their cryptocurrency to exchange addresses.
Theoretically, sending huge quantities of an asset to exchange is seen negatively since it suggests that significant investors want to sell or trade these tokens for other cryptocurrencies. This might intensify the selling pressure on ETH, resulting in a significant price decline.
The Supply and Demand for ETH
If, on the one hand, the movement of whales might cause the price of ETH to decline, the asset’s broad demand remains a positive indication. A CryptoQuant expert said that cryptocurrency has the biggest market demand now.
In August, 40% of total trade activity on the cryptocurrency market was accounted for by Ethereum, while Bitcoin captured roughly 30%. In this manner, The Merge continues to increase the value of the asset, notwithstanding the market’s recent price adjustments.
During the merger, Binance will stop withdrawals and deposits. Binance revealed in a statement that security measures would be implemented with respect to The Merge. On September 6, users of the world’s biggest exchange by trading volume will no longer be able to deposit or withdraw ERC-20 tokens.
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