Large Amounts of ETH Moved to Exchanges Before Merge; Bitcoin Dips Below $20K; Here Is What Analysts Noticed

On Thursday, the price of ethereum (ETH) unexpectedly dropped in the cryptocurrency markets, interrupting a period of price stability that had been in place in the hours following the historic merge of the Ethereum blockchain to a proof-of-stake blockchain that uses less energy.

According to cryptoanalyst Willy Woo, a large amount of ETH moved to exchanges, which might suggest a dump. ‘’A significant amount of ETH moved onto exchanges leading up to the merge.” Was it to let exchanges deal with any technical issues? Or to dump?’’

The second-largest cryptocurrency by market value was down 8.32% to $1,483 at the time of publication, marking its greatest daily loss since August 26. The largest cryptocurrency, bitcoin (BTC), was down only about 2% on the day. At press time, Bitcoin was once again trading at $19,802, below the $20k threshold.
According to Riyad Carey, a research analyst at the cryptocurrency analytics company Kaiko, the abrupt price drop appears to be a case of “buy the rumor, sell the fact.”

Here Is What Analysts Noticed

Onchain analytics firm, Santiment reported that traders expected ETH to dump after the merge, ‘’ As traders bet Ethereum would fall leading up to the merge, short liquidations have been the story thus far. After $ETH prices dropped to $1,565 after Tuesday’s CPI report, traders expecting a drop bet wrong after this mild bounce back up to $1,635.’’

For cryptoanalyst Ali, Ethereum may test $1460 to dip towards $1000, ‘’Ethereum | You don’t want $ETH to dip below $1,460 because it could trigger a sell-off that sends it to $1,000. ETH’’ he wrote.

Messari CEO Ryan Selkis asserts that ETH Merge might have been a sell the news event, ’’I’ve 4x’d my ETH holdings.I figured this would be the “sell the news” event, but the positive impact of the Merge is tremendous, and there’s a good chance institutions and the woke mob bid ETH to the moon now that it’s “clean.”Still like me BTC, but the game just changed.’’

Gareth soloway, an analyst also has this same opinion,’’ The great merge was a classic ‘sell the news’ event. Watching the key $19,500 level again on BTC. Has never confirmed below. Once it does, small support at $17,500, if that breaks…. $12,000-$13,000.’’

He predicts that if the BTC support at $17,500 is broken, Bitcoin may test the $12,000-$13,000 range.
Arthur Hayes believes a drop in ETH issuance brought on by the merge remains positive. “The only chart that matters post-merge.” Show me dat drop in ETH issuance every day, and I will show you a BULL FUCKING MARKET!’’

However, Dennis Porter, a market observer points out to large numbers of transactions in the mempool, ’’Any good reasons why ETH has over 300,000 transactions waiting in limbo post merge? Certainly doesn’t look like smooth operating, but maybe ETH experts have a valid answer’’he asked.

Currently, Over 13.7 million ETH are now being staked on Ethereum. That’s over 11.3% of all circulating ETH. Meanwhile, At current prices that’s over $20 billion securing Ethereum through Proof of Stake.

Image Credit: Shutterstock