Ethereum [ETH], the largest altcoin witnessed a major rejection near $1,420 on September 22. ETH fell more than 20% in a week despite the Merge hype. Furthermore, there remained a risk of a decline below the USD 1,220 support. Several stories, such as “sell the news,” emerged shortly after the merge went live.
Needless to say, the token was under a lot of selling pressure by all cohorts, but especially by retail sellers.
Dark days ahead
Most of Ethereum’s selling pressure came from retail sellers. Santiment’s latest tweet sheds light on this grim scenario in a September 22 tweet. In this, the formerly dominant buyers of ETH had significantly reduced their supply since the merger.
Source: Santiment
The Ethereum mterribly (on 15-9) brought a service in large address behaviour. The tweet also stated:
“In the past 6 days since the shift to proof of commitmentaddresses with 1k to 10k $ETH have dropped 2.24% of their cumulative holdings. 100 to 1k addresses are down 1.41%.”
One thing is certain here. Accumulation prior to the Merger was mostly speculative. In addition, it was not the intention of investors to hold the asset after the update, as the chart before it shows.
Holders getting rid of their property, did that come as a surprise? Well not really. About 50% of the holders have suffered huge losses. The Market Value Realized Value (MVRV) ratio for Ethereum had fallen to -13.6% as profitability has plummeted over the past week.
Not only this, even miners sailed on the same cart. In general, Ethereum miners have dumped up to 30K ETH holdings due to the price movement and enhanced effect.
Source: Twitter
Indeed a clear reflection of the crumbling state of trading sentiment on Ethereum right now, with many looking to reduce their ETH exposure.
Any way out?
Of course there is always a way out. But what if traders/investors were patient?
According to ultrasound.money data, the circulating supply of ETH reached 120,521,139.31 ETH when the Merge was shipped. Since then, it has fallen by about 170 ETH, meaning ETH is currently deflationary.
As the supply dwindled, ETH (if and when) showed high demand that could lead to a price increase. But again, caution is advised at all times.
This post ETH’s disturbing post-merger performance may have a lot to do with this one factor
was published first on https://ambcrypto.com/eths-upsetting-post-merge-performance-could-have-a-lot-do-with-this-one-factor/
