Two weeks ago, Ethereum received praise and attention for successfully completing its highly-anticipated Merge, a historic switch to a new “proof-of-stake” blockchain intended to significantly reduce energy consumption—by as much as 99%.
However, when investors awoke shortly after the upgrade,the token’s price was at its lowest point since July. Ethereum has dropped more than 20% from its September high of almost $1700 to its current price of $1315.
ETH’s social activity increased as a result of the buzz that surrounded the Merge before its implementation, according to data from cryptocurrency social analytics company LunarCrush.
Additionally, according to statistics from Santiment, the term “Merge” trended as the most cited term for several months prior to the Merge. The event, however, resulted in a slow drop in ETH’s social activity.
Most of Q3 was devoted to holders putting ETH into exchanges. Santiment data showed a rise in the alt’s supply on exchanges over the course of three months. It’s interesting to note that on September 15, this measure stopped moving up and started moving south.
This meant that ETH holders started distributing coins before the Merge. This was brought on by the ambiguity regarding the event’s outcome.
However, coin accumulating continued after it was successfully finished. Additionally, there was a progressive drop in the amount of ETH transmitted to exchanges.
Q4 the Season for Altcoins?
In Q4, it is anticipated that the price of the altcoins will increase due to a persistent drop in the supply of ETH on exchanges.It is impossible to estimate how much whale accumulation has affected the price of ETH.
Key whales that held between 10,000 and 1,000,000 ETH tokens gradually decreased their ETH holdings a few days prior to the Merge, according to data from Santiment.
These whales saw no reason to come back once the Bitcoin market fell along with the rest of the financial market. Additionally, it was the responsibility of asset dealers to raise the price of ETH at that point.
