Ethereum Experiences Massive Exchange Inflows Ahead of Merge

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Last Updated on 26 July 2022 by CryptoTips.eu

Jeroen Kok

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The Ethereum Merge is the latest thing investors are looking forward to. This will bring about the transition to Proof-of-Stake, a development that many believe will bring about the growth of Ethereum.

This has garnered a lot of interest in the last few days, and Ethereum exchange balances dropped significantly as stakers prepared for the Merge. The sentiment has changed drastically though, as there has been a sharp increase in Ethereum inflow on exchanges again.

Data from on-chain analytics platform, Santiment shows that there is a negative perception on Ethereum ahead of the event scheduled for September 2022. The Ethereum in-flow to exchanges suggests that investors are being cautious and getting ready to sell as uncertainty looms.

In its report, Santiment said that Ethereum’s price has been on a downward spiral because there is a lot of capitulation going on. The percentage of Ethereum on exchanges has increased steadily since April, which indicates that there is a bearish sentiment on Ethereum from investors despite the rebound in July.

This is a bad sign that shows the Merge, though greatly anticipated, has not convinced investors to hold onto Ethereum with confidence.

Conversely, the number of active addresses on Ethereum network has increased in spite of the negative sentiment, rising to 600,000 which is the highest seen since May. This is generally a good sign that shows users are increasing activity on the network, which could translate to buying and then price increase.

Even if the bearish sentiment continues and another massive capitulation hits Ethereum, the tide may change after the Merge as fees and other issues with Ethereum should be resolved by then.