Updated on January 26, 2023 10:04 AM
The much-awaited Ethereum Merge was anticipated among investors as many believed it would surpass the charts and will make a new record high. But things turned out the opposite. After the transition from proof of work to proof of stake mechanism, the price of Ethereum fell by significant levels.
Many blockchain analytics firms reported that 14.52% of the total Ether supply was sent to exchanges. This metric saw a decline of 8.2% after the Merge, weeks after the Merge marked a rally in Ether’s supply on the exchanges. Santiment’s data reveals the percentage of the total supply of Ethereum sent to exchanges saw a rise from 13.71% to 15.82% between 14 August and 14 September.
This reflects the leading alt got distributed significantly post-Merge. And it was an outcome of the uncertainty revolving around the success of the Merge. And that eventually fed fear into many investors that Ethereum could further tank from this point.
The decline in Ethereum’s supply on the exchanges suggests one outcome - the buying activity has resumed. But is it being reflected in the alt price?
The trouble with Ethereum started after the Merge. The Merge was successful, and Ethereum saw a sharp increase of 3% in its price. Followed by the next 2-hour period, Ethereum faced a 21% decline. And currently, it is trading at around $1,296.81.
Due to the sharp fall in its price, believers in Ethereum are holding the asset at huge losses. Santiment’s data shows that - after the Merge, Ethereum’s market-value-to-realized-value (MVRV) housed below zero. And it continues to post negative values. The 30-day MVRV is close to -8.853% and indicates investors incurred huge losses on their investments.
The whales have been inactive in the Ethereum market. According to Santiment’s data, the Ethereum whale transactions that exceeded $100,000 and $1 million dropped by a significant level.
On the day of Merge, a total of 9046 whale transactions exceeded the $100,000 mark. Since then, the numbers have dropped by close to 76%. On the same day of Merge, a total of 1927 transactions exceeded the $1 million mark. And the same way, this number saw a massive decline.
Ethereum has become a victim of continuous decline after the Merge. And the investors are now on a negative bias. The Merge was one step toward the completion of Ethereum. And there’s still a long way to go. Will Ethereum fail or succeed?