ETH Whales Move Ethereum to Exchanges Awaiting The Merge
The Merge, an event where the ETH Mainnet will merge with the Beacon Chain and take on the Proof-of-Stake (PoS) technique as consensus, has entered the commencement. This comes after the Ethereum Foundation affirmed that the event should happen between the 10th and 20th of September.
The merge, awaited for years by network lovers, has decidedly affected the price of the second largest cryptocurrency in the world. Since the Ethereum 2.0 date was declared on July 15th, the network native token has surged 70% as per TradingView, regardless of the going price correction last week.
Notwithstanding, this upswing could rapidly switch because of movements made by the whales. Information from analytics firm Santiment shows that major Ethereum cold wallets have decreased their ETH holdings by 11% as of late. They have done this by moving their cryptocurrencies to exchange addresses.
The gap between #Ethereum's top 10 largest non-exchange addresses & exchange addresses is closing as we head toward the #merge in 3 weeks. Since May 10th, these top non-exchange $ETH addresses hold 11% less coins, & top exchange addresses hold 78% more. https://t.co/k5OlJ1hG3D pic.twitter.com/XOAVhXaKPG— Santiment (@santimentfeed) August 24, 2022
In principle, sending a lot of amounts for an asset to exchanges is seen as a negative, as it demonstrates that large investors need to sell or exchange these tokens for other cryptocurrencies. This situation could build selling pressure on ETH, causing its price to drop impressively.
from one viewpoint, the movement of whales can make the price of ETH fall, and the general demand for the asset keeps on being a bullish marker. A CryptoQuant analyst featured that the cryptocurrency right now has the most popularity in the market.
In August, Ethereum represented 40% of all trading volume in the cryptocurrency market, while BTC snapped up around 30%. Along these lines, The Merge keeps on boosting the asset, notwithstanding the price correction that the crypto market suffered in recent days.
Binance will suspend withdrawals and deposits during the merge. In a statement, Binance declared that safety efforts will be taken comparable to The Merge. Users of the world's largest exchange in terms of trading volume will not be able to store or withdraw ERC-20 tokens on September 6.
On this day, the merger will be updated in the Bellatrix consensus layer, which will mark the initial step towards ETH 2.0.
On September 14, the date set for the Paris execution layer update, withdrawals and deposits will be suspended too.
Despite the shutdowns, other activities including ETH and other ERC-20 tokens, for example, spot and futures trading will keep functioning unchanged during The Merge.