The future merger of Ethereum is one of the most discussed topics in the cryptocurrency sector and analysts have a wide range of perspectives on how the transition to the proof-of-stake model could affect the price of Ether.
Whales accumulate in anticipation of merging
Cryptocurrency intelligence firm Jarvis Labs provided a deeper analysis of the ongoing accumulation of Ether by whale wallets, and public the following graph in which the percentage change of the whale wallets against the price of ETH is observed.
The color of the dots relates to the price of Ether, and the chart shows that the whale wallets began to decrease their holdings when the price was above $4,000 and did not begin to re-accumulate until after the price fell by below USD 2,300.
Jarvis Labs said:
“The whales continue to accumulate Ether, their accumulation remains in a lateral-upward trend.”
And it’s not just the whales that are looking to get more Ether in the fall, as shown in the following graphicwhere the red dots indicate that both whale wallets and smaller wallets have seen an increase in accumulation.
Jarvis Labs analysts said:
“Looking only at the distributions of Ether wallets, it can be deduced that Whales UP + Fish UP (Both whales and fish seem to be accumulating). Merger narrative?”
Is there an Ethereum decoupling in the future?
Analysts at Delphi Digital contemplated whether the price of Ethereum could decouple from BTC before or after the merger. Analysts also predict that the altcoin will “likely see more consolidation for the ETH/BTC pair in the near term.”
One of the main questions raised by this chart is what it takes for Ether to break free from the “invisible chain” that has kept it tethered to Bitcoin for so long.
According to Delphi Digital, the current bullish “ultra-safe money” and “the meltdown” narratives surrounding Ether could be just the thing to help Ether break free of its correlation to Bitcoin price action.
DelphiDigital said:
“Interest in “post-merger” Ether is only going to get stronger from here, especially as more people recognize the opportunity to earn higher real returns denominated in a deflationary asset.”
Ether staking continues to grow
Despite the price of Ether continuing to decline, data shows that the number of ETH locked on the Beacon Chain continues to rise. Data from Dune Analytics also shows an increase in deposits in Eth2 and multiple analysts have shared their opinion on how institutional investors and whales could trade Ether in the pre- and post-merger phase.
Overall, the data shows that even with the price of Ether trading 42.5% away from its all-time high, smart money is still accumulating due to the expected boost in staking reward percentage and the anticipation that the price will turn. bullish once Ethereum becomes a deflationary asset.
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