ETH whales are on the move. According to data collected by Sanimenttop investors in the Ethereum (ETH) network are currently sending their holdings in the asset to exchange addresses.
The Merge, an event in which the ETH mainnet will merge with the Beacon chain and adopt the consensus method of Proof-of-Stake (PoS), has started its countdown. This follows confirmation by the Ethereum Foundation that the event is set to take place between September 10 and September 20.
This merger, expected for years by network enthusiasts, had a positive impact on the price of the second largest cryptocurrency in the world. Since the announcement of the date of Ethereum 2.0, made on July 15, the native token of the network has gained 70% according to TradingViewdespite a correction in its course in recent weeks.
However, this bullish trend could quickly reverse due to the movements made by the whales of the asset. Data from analytics firm Santiment shows that major Ethereum cold wallets have reduced their ETH holdings by 11% in recent months by moving their cryptocurrencies to exchange addresses.
In theory, sending large amounts of an asset to exchanges is considered a negative, as it indicates that large investors want to sell or trade those tokens for other cryptocurrencies. In this case, it could increase the selling pressure of ETH, causing its price to drop considerably.
ETH whales and demand
If, on the one hand, the movement of the whales can cause the price of ETH to fall, the general demand for this asset continues to represent a bullish indicator. A CryptoQuant analyst pointed out that the asset currently has the highest demand in the market.
In August, Ethereum accounted for 40% of all trading volume in the crypto market, while BTC accounted for around 30%. Thus, The Merge continues to boost the asset, despite the price corrections that the market has suffered in recent days.
Binance will suspend withdrawals and deposits during The Merge. In a press release, the exchange announced that security measures will be taken as part of this merger. Users of the world’s largest crypto exchange by trading volume will therefore not be able to deposit or withdraw ERC-20 tokens on September 6.
On that day, the merger will take place in the Bellatrix consensus layer, which will mark the first step towards ETH 2.0.
On September 14, the date set for the update of the Paris execution layer, withdrawals and deposits will also be suspended.
Despite these suspensions, other activities involving ETH and other ERC-20 tokens, such as spot and futures trading, will continue to operate unchanged on Binance during the merger.
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ETH Whales Move Assets to Exchanges Ahead of The Merge – BeinCrypto
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