While the whole community is preparing for the biggest event in Ethereum’s history, some people are making necessary preparations to make the price fall below the worst predictions. We had a story just about a week ago that some market analysts forecast the worst scenario being that ETH will fall to the $400 mark due to how the community and the market will see the results of the merge.
There are some tensions within the network itself with many users, some holding considerable amounts of ETH, completely rejecting the idea of switching to the PoS consensus mechanism. A couple of active community members even expressed their speculations that a large group of ETH holders is preparing for a hard fork that will take place right after September 15.
While these news stories break out and create a lot of chaos, some serious things are happening in silence. Analytical platforms that track statistics of different crypto exchanges started noticing something peculiar in the market: some holders of ETH are moving their tokens to exchanges in what seems to be a preparation for a huge dump on the market.
The current price of ETH is $1540, but it peaked at around $2000 when the news cycle revolved around the Merge. The $2K price is a notable resistance level that was quickly picked up by many analysts and large traders who see this as a signal that the asset will unlikely break through this barrier. On the other hand, the gathering of ETH assets on exchanges spells “doom” for many long-term holders and those who hope for a bull run right after the event.
It was confirmed by Santiment that all ETH wallets not connected to exchanges have lost 11% of all holdings while TOP10 wallets on exchanges received a huge influx of 78%. The speculation is that these whales are going to sell hard when the merge ends. It may collapse the market and create a very long slump that may devastate investors who go all in on Ethereum. On the other hand, big sharks may want us all to believe that they will sell. The time will tell.
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