Ethereum: What to expect from a major variant in Q4 after the merger

The The Ethereum merger was considered the most anticipated event before September 15th. However, there is no point in denying the fact of that The merger failed to positively impact the price of Ether [ETH].

According to data from cryptocurrency social analytics platform LunarCrushThe hype surrounding the merger prior to its implementation led to a spike in ETH’s social activity. Additionally, for several months prior to the merger, “merging” was the most frequently mentioned term, according to Santiment data.

After the event and the hype that followed, ETH’s social activity has seen a steady decline.

The price of the main variant is not saved from perdition. Data from CoinMarketCap showed that ETH opened the fourth quarter at $1,326.30, down 24% since the merger.

ETH On-chain: What to Expect in Q4

Holders spent most of the third quarter sending ETH to exchanges. Data from Santiment revealed a rise in alternative supply on exchanges over the three-month period. Interestingly, as of September 15, this scale has left its bullish spike and begun a journey south.

This means that ETH holders before the merger started distributing coins. This was due to the uncertainty surrounding the success of the event.

However, after it was successfully completed, the coin accumulation resumed. Also, the amount of ETH sent to exchanges has gradually decreased.

With the continued decline in ETH supply on exchanges, alt price is expected to witness an upward reversal in the fourth quarter.

However, ETH shares a statistically significant positive correlation with Bitcoin [BTC]An asset that many believe has not bottomed out in the current bear market cycle.

Source: feeling

In addition, as evidenced by the measure of Dollar Life Invested (MDIA) in the third quarter, previously dormant ETH started moving headlines a month before the merger. While the drop in the MDIA of an asset indicated significant activity on its network and was a precursor to price increases, the opposite was the case for ETH.

When the MDIA went down (showing increased activity), the price of ETH went down as well. In the three weeks leading up to the merger, ETH logged in consecutively streams Where investors fear the failure of the merger.

Additionally, passive coin transfer addresses may be investors sending long-term Ethereum out of their wallets.

After the merger, MDIA started an upward trend indicating that hibernation was back in the ETH network.

Source: feeling

When the whales come out

The impact of the accumulation of whales that leads to the price of ETH cannot be overstated. According to data from Santiment, major whales holding between 10,000 and 1,000,000 ETH coins gradually reduced their ETH holdings a few days before the merger.

With the downturn in the broader financial market and the accompanying downturn in the cryptocurrency market, these whales have found no incentive to return. Moreover, the responsibility for raising the price of ETH rests with the asset dealers.

Source: feeling

At press time, buying pressure has eased on the daily chart, making a near-term price rally increasingly unlikely.

Leave a Reply

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