Ethereum (ETH): The community has nothing to fear from the Merge?

As The Merge, the biggest Ethereum (ETH) blockchain upgrade, approaches, market sentiment still seems very mixed. In recent months, ETH whales have repatriated a significant amount of ether to the exchanges. This suggests that they are preparing to liquidate their assets. Should we now expect the price of ETH to plunge after the merger? That is the question !

ETH whales ready to sell?

ETH whales, which have borne the full brunt of the bear market, are shifting their assets to cryptocurrency exchanges. A strange situation, to say the least, when we know that The Merge, which is scheduled for September 15, has the potential to drive up the price of ether, the native token of the network.

Apparently, this theory is not shared by whales. According to data from blockchain analytics firm Santiment, the divide between the top 10 non-exchange addresses and those that do, is tending to narrow. Indeed, it seems that over the past three months, the largest ether holders have transferred a significant amount of funds to the exchanges.

The 10 most important Ethereum wallets, with or without exchange – Source: Santiment

As a result, there is an 11% drop in supply held by non-exchange addresses. On the other hand, the cryptoassets contained by the wallets attached to the exchanges are up by 78%.

A mixed feeling

In general, when the volume of trading in the stock markets is intense, it often indicates a desire by traders to liquidate their short-term assets to achieve maximum profits. More generally, this reflects a downward trend. In the present case, one can easily imagine that the whales are preparing for a mass liquidation. Which will take place once the price of ETH reaches a certain level after the success of The merge.

This analysis is consistent with that of many experts who estimate that the merger will generate a “buy the rumour, sell the news” movement. In other words, even if the price of ETH is expected to increase with the deployment of The Merge, it is very likely that this dynamic will reverse very quickly depending on the selling pressure….

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