Ethereum: ETH whales wake up ahead of The Merge

Ethereum: ETH whales wake up ahead of The Merge

Alea jacta is – The news finally fell a few days ago: The Merge will arrive between September 10 and 20. The object of all the attention, of all the hopes, but also of all the speculations, we are going to witness one of the most important of the young cryptocurrency ecosystem. But beyond technological considerations, some actors nicknamed whales » are organizing in the shadows to make the most of Ethereum’s paradigm shift. The stock market adage buy the rumor and sell the news will it be observed once again? Will we witness a self-fulfilling prophecy? Beginning of response to follow.

The great changes of Ethereum continue

The Merge we are talking about today is actually the second phase of network transformation Ethereum. The first phase began in 2020 with the launch of the Beacon Chain who introduced consensus by proof of stake – or stake – on the network. ETH 2.0 was launched. This new layer will gradually be “ connected » to the main and The Merge will be a crucial step.

But we will have to wait third phase to witness significant changes for the end user of the network. Indeed, the developments concerning the gas coststhe increase in the number of transactions and the effective reduction in energy consumption will only occur at the end of the third phase. This being planned in 2023 by the Ethereum Foundation. It will therefore be necessary to wait a little longer before seeing the system running at full power, and incidentally having access to its ETH “temporarily blocked” in the system.

On-chain data sometimes makes it possible to anticipate the market.  You still have to know how to read them and anticipate them!  Here, the curves suggest that the whales are about to massively sell off their ETH right after The Merge.
In red, the value held on non-exchange addresses that are falling and in yellow that held on exchange addresses that are risingSource: Santiment

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Whales anticipate ETH price drop

But do not count on the smart money » to patiently wait. No, The Merge’s approach agitates the small world of whales who line up for battle. As you know, the price of an asset does not always reflect its fundamental value and Ethereum is no exception to the rule. After suffering, like the rest of the market, a sharp fall in recent months, the Classes finally rebounded slightly this summer to touch 2000 dollars. Probably because of the speculation around the advent of phase 2.

The on-chain movement analysis company Saniment given some indications on the intentions of the most important whales on the market. The wallets off-platforms saw value in ETH down 11%. On the other hand, the addresses held by exchanges have increased by 78% ! In general, when you want to prepare to sell your tokens, you transfer them to a platform. Needless to say that the big wallets are in the starting blocks for sell massively the news after buying the famous rumor. And many observers also believe that we will witness a fall of the course as soon as the news is confirmed.

Please note, however, that this is not investment advice at all! The market loves to take Madames Irma the wrong way. It thus does exactly the opposite Of which ” everyone thinks “. So what do we do ? We read the Journal du Coin, we get information, we ask questions and we avoid crowds. By the way, here are some essential qualities to develop in the current period.

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