The countdown is underway for The Merge, the big merger of Proof of Work and Proof of Stake consensus on the Ethereum network. Meanwhile, market observers are wondering how this event will play out. Let’s check out what the data suggests.
Investors’ high exposure to ETH
In material from a week ago, we touched on the behavior of Ethereum whales. It presents a very interesting picture and may confirm the prevailing theses in the markets for many years now. If you haven’t read it yet, take a look at the article under the title: “As The Merge approaches, whales move ETH to exchanges”.
Meanwhile, we observe that on Friday, September 2, the highest trading volume for Ethereum, over the last month, was reached. It amounted to exactly 3,703 ETH. This confirms the steady and still firm commitment of investors.
However, volume alone does not determine whether transactions are on the sellers’ or buyers’ side. Hence, it is worth looking deeper.
Clear strength in the market
Other key data shows that the number of addresses sending ETH has continued its downward trend in recent days. Thus, another monthly low of 2.42 thousand was reached on Friday.
Sending addresses are those associated with traders currently making sales transactions. In opposition to them are the addresses of buyers.
Going further, we note that Ether outflow volumes from exchanges reached 16.3 thousand ETH on Friday. This type of behavior is a clear indication that buyers expect the price to rise further. The sell-off we observed a few days ago was most likely a short-term event. We can expect another similar one around the Merge itself.
Justin Sun among those interested in Ethereum
As reported by Chinese journalist Colin Wu, among those deeply interested in Ethereum is, among others, the widely known creator of the Tron cryptocurrency, Justin Sun. He made recent purchases of Ether, which amounted to 5,633.05 ETH on Monday. Four days later, his account increased by another 14,999.87 ETH.
Wu announced this fact in a tweet, which read:
“The address 0x17…a132 designated by Nansen as Justin Sun recently transferred more than 20,000 ETH, and now this address (0x17…a132 ) contains a total of 277,000 ETH worth $437 million.”
Seeing similar behavior of investors, it is very likely that the coming days could be very interesting for the Ethereum ecosystem. Thus, its value has the right to keep rising.