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Massive Ethereum Volume Hit Exchanges Ahead of Merge Update: Details

Tue, 07/26/2022 - 08:30
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Arman Shirinyan
While Ether had good rally in July, sentiment around coin is not looking so good
Massive Ethereum Volume Hit Exchanges Ahead of Merge Update: Details
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Ahead of September's Merge update, Ethereum is in a weird place as investors are not yet ready to invest in the network prior to the fundamental change - since it is not yet clear what kind of effect the PoW switch will have on the mainnet.

Massive inflows to centralized exchanges is one of the main indicators of high fear among investors who move their holdings to exchanges to sell as soon as they can if something does not go as planned for the new version of Ethereum.

Despite the insecurity of some market participants, many test environments of Ethereum received the update and had no technical issues with it whatsoever. The only thing that investors should worry about right now is the unpredictable reaction of the cryptocurrency market.

Luckily, the market reacted more than positively to the reveal of the exact date when the Merge update for Ethereum will go live, as the second biggest cryptocurrency on the market saw a massive 60% price increase in the last two weeks.

Cardano, XRP and Others Losing 5-10%, But It's Way Too Early to Panic: Crypto Market Review, July 25

Unfortunately, the "reveal rally" was not supported by larger retail and institutional investors, which is why Ether is reversing back below $1,500.

What do other indicators tell?

While the number of ETH on centralized exchanges is growing exponentially, other indicators show that sentiment around the cryptocurrency is not doing well considering the overall situation on the digital assets market.

Additionally, trader sentiment dropped even lower after the market failed to push the cryptocurrency's price back above May's level of $2,000. For now, the majority of participants do not expect anything exceptional from the second biggest cryptocurrency until the fundamental update goes live.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.