- According to Santiment, there was a significant decrease in whales ETH holdings.
- Addresses holding 1,000 to 10,000 ETH have lost 2.24% of their total holdings.
Following the successful Merge update, large Ethereum holders began to rapidly redistribute their holdings on the market, which could have been the primary source of significant selling pressure that pushed ETH’s price down.
Addresses holding 1,000 to 10,000 ETH have lost 2.24% of their total holdings over the last six days, indicating a significant increase in selling pressure given their market size.
🐳 The #Ethereum #merge on 9/15 has brought on a shift in large address behavior. In the past 6 days since the shift to #proofofstake, addresses holding 1k to 10k $ETH have dropped 2.24% of their cumulative holdings. 100 to 1k addresses have dropped 1.41%. https://t.co/qdOVcdDjgC pic.twitter.com/fcFy8hTUGD
— Santiment (@santimentfeed) September 21, 2022
Rapid Decline of ETH’s Value
The Ethereum Merge has resulted in a shift in trading behavior. The much-anticipated Merge event sparked a debate about the reliability of Proof of Stake versus proof of work consensus. However, the price drop following the Merge was contrary to market expectations in an otherwise negative environment.
The rapid decline in the value of ETH is caused by whale investors who are dissatisfied with the network’s transition to a PoS algorithm. Despite Ethereum’s high liquidity and one of the largest market capitalizations, market makers were unable to counteract the massive sell-side trading volume, which affected the asset’s price.
According to the Santiment chart, accumulation before the merger was mostly speculative, and investors did not intend to hold the asset after the update, so the sudden increase in selling pressure may not be entirely natural. The technical outlook for ETH is also dismal, as the asset has fallen below its 50-day moving average and is no longer in an uptrend.
At the time of writing the value of Ethereum is $1,296.57 with a 24-hour trading volume of $22,600,053,055. In the last 24 hours, Ethereum has dropped 3.83%.
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