The upcoming “merger” phase in the leading altcoin Ethereum is one of the hottest topics in the cryptocurrency space these days. However, analysts seem to be unable to agree on how the Ethereum network’s transition to proof-of-stake (PoS) will affect the price of ETH.
Are whales accumulating ETH prior to the exchange in Ethereum?
Cryptocurrency analysis firm Jarvis Labs and whale have published the chart below, which looks at the percentage change in wallets versus Ethereum price. The color of the dots shows the Ethereum price, while the chart shows that whale wallets started reducing their holdings when the price was above $4,000, and did not start accumulating again until the price dropped below $2,300.
On the other hand, it seems that whales aren’t the only ones looking to buy ETH on the decline as the chart below shows that both whale wallets and smaller wallets are seeing an increase in savings. Jarvis Labs used the following statements in his statements on the subject:
Whales continue to accumulate ETH, their accumulation tends to rise in the horizontal direction. Looking at the Ethereum wallet distributions alone, one can deduce Whales + Fishes (both whales and fish seem to be accumulating). The ‘unification’ narrative?
A “consolidation” is expected first for ETH
Analysts at Delphi Digital are wondering if Ethereum price can diverge from Bitcoin (BTC) during or after the merger. spoke. Analysts also predicted that the altcoin “could see further consolidation for ETH/BTC in the short term.” One of the main questions raised by the chart below was what it would take for ETH to break free from the “invisible chain” that had kept it tied to Bitcoin for so long.
According to Delphi Digital, the current “solid money” and “merger” narratives surrounding ETH may be what will help ETH break free from its correlation with Bitcoin price action. Analysts use the following phrases:
Post-merger interest in ETH will only grow stronger, especially as more people recognize the opportunity for higher real returns expressed in a deflationary asset.
Staking efficiency for altcoin strengthens
Even as Ethereum price continues to fall, the data shows that the number of ETH staked on Beacon Chain continues to increase. Data from Dune Analytics also shows increased deposits to Eth2, and multiple analysts shared their views on how institutional investors and whales can trade ETH before and after the merge.
Overall, although the data shows that ETH price is about 42.5 percent below its all-time high; Reasons such as the expected increase in the percentage of stake rewards and the expectation that the price will rise as Ethereum becomes deflationary indicate that smart money continues to accumulate ETH.
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