Ethereum (ETH) Whales Flee After The Merge
✍️ 23 September, 2022 - 7:00 👤 Editor: Jakub Motyka
- The merger of Ethereum (ETH) has changed the cryptocurrency market forever.
- Contrary to expectations, whales they have not accumulated more tokens, they are selling it.
- Will this affect Ethereum in the long term? What will happen to the price of ETH?
The new update of Ethereum (ETH) has caused great changes, but one of the most unexpected has been the way in which the ETH whales have fled. The Merge, in general, is the transformation of the Ethereum network from Proof of Work to Proof of Stake, this step being one of the most anticipated by network users. In this way, the transactions will be validated by the addresses that have been staking from now on. Consequently, the protection of the network will no longer be in the hands of the miners and will pass to the validators in exchange for rewards.
Contrary to what many expected, the whales within the Ethereum ecosystem have been significantly reduced. According to the data from the last week, the holders who have between 1,000 and 10,000 ETH have decreased by approximately 2.24%. In turn, addresses with 100 to 1,000 coins have fallen by about 1.41%. Considering the cumulative number of these groups, the selling pressure in the market has been increasing.
How Do Whales Affect The Ethereum Network Community?
Despite the immense liquidity behind the ETH market, such massive trading volume could have consequences on the value of the token. A table made by Santiment suggests that the accumulation of investors was only due to speculation before the Merge. Consequently, the current selling pressure cannot be a coincidence.
According to many analysts and dedicated platforms, the Merge brought significant gains, allowing the native currency to rise. Likewise, just 24 hours later, the movements that we have mentioned have emerged, which has had a negative impact on the market. This has caused the technical outlook for ETH to be quite negative, leading many users to predict that the currency could continue to fall.
What Is The Role Of Whales In The Crypto Market?
Whales are large crypto asset investors holding more than 0.1% of the supply of the coins of their choice. The net flow of large holders is a metric that measures the change in the positions of these investors, due to its impact on the markets. In this case, contrary to the expected accumulation, this metric is in “reduced positions and sales”, which suggests that investors are selling their assets.
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