The Ethereum Merge was considered the most anticipated event before September 15. However, it makes no sense to deny that the Merging Did Not Affect Ether . Price [ETH].

According to data from the cryptocurrency social analytics platform LunarCrush, the hype surrounding the merger before its implementation boosted ETH’s social activity. In addition, the term “Merge” was the most frequently mentioned term several months before the merger, according to data from Santiment.

However, after the event and the ensuing death of the hype, ETH’s social activity witnessed a steady decline.

The price of the leading alt has not been spared the decimation. ETH opened Q4 at $1,326.30 and is down 24% since the merger, data from CoinMarketCap showed.

ETH on-chain: what to expect in Q4

Holders spent most of the third quarter sending ETH to exchanges. Santiment data revealed a rally in the alt’s supply on exchanges within the three-month period. Interestingly, from September 15, this metric stopped its upward rally and started a journey south.

This meant that ETH holders started distributing coins before the merger. This was due to uncertainty about the success of the event.

However, after its successful completion, the accumulation of coins resumed. In addition, the amount of ETH sent to exchanges also gradually decreased.

With an ongoing decline in the supply of ETH on exchanges, the price of the alt is expected to see an upward reversal in the fourth quarter.

However, ETH shared a statistically significant positive correlation with Bitcoin [BTC]an asset that many believe has not yet reached the bottom of the current bear market cycle.

Source: Santiment

In addition, as revealed by the Mean Dollar Invested Age (MDIA) metric in Q3, previously dormant ETH coins started moving addresses a month before the merger. While a drop in an asset’s MDIA indicated significant activity on its network and foreshadowed a price increase, the reverse was true for ETH.

When the MDIA fell (which showed increased activity), the price per ETH also fell. In the three weeks prior to the merger, ETH recorded consecutively outflow because investors feared the Merger would fail.

In addition, dormant coin-moving addresses could be investors who sent the long-held ETH out of their wallets.

After the merger, the MDIA started an uptrend, suggesting dormancy has once again returned to the ETH network.

Source: Santiment

While the whales fly out

The impact of whale accumulation driving the price of ETH cannot be overstated. According to data from Santiment, the major whales with between 10,000 and 1,000,000 ETH coins gradually reduced their ETH holdings a few days before the merger.

With a decline in the broader financial market and a consequent decline in the cryptocurrency market, these whales witnessed no reason to turn back. In addition, the responsibility to drive the price of ETH up rested on the shoulders of wealth retailers.

Source: Santiment

At the time of writing, buying pressure on the daily chart had eased, making a significant near-term price rally increasingly unlikely.

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