Ethereum was one of the biggest winners in the rallies that rocked cryptocurrency market last week. When one of Ethereum’s developers announced the Merge, the network experienced a surge. It was likely to happen in September. The announcement triggered ripple effects that reached other digital assets within the sector. Despite the positive on-chain metrics over the past week, it appears that Ethereum investors have yet to make their investment.
Inflows of Exchange Money Rise
Large and small Ethereum investors have both been increasing their accumulation over the past week. The difference in the amount of ETH being sent to centralized exchanges compared with the one that left them is clear. It is clear that investors have different feelings about investing in ETH.
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The numbers for the week just ended show that $3.3 billion total in ETH had flowed into centralized exchanges. The volume of ETH that was exported was however about 100 percent higher. Glassine data shows $6.5 billion was expended, which results in a net flow of -$3.1 million.
Investors are accumulating ETH by shifting it out of exchanges, and possibly to their personal wallets. This also indicates a long-term holding sentiment by these investors. It also means that there is a decrease in the selling pressure which has been weighing down the market for the past few weeks. Investors can now accumulate as much ETH possible because of the high buying pressure.
Price of Ethereum drops to $1,500| Source: ETHUSD on TradingView.com
Ethereum Merge is closer
Most of Ethereum’s gains over the past week can be attributed to updates about the Merge. Ethereum gained over 40% in the last week due to the Merge announcement, however the price was not the only factor affected.
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Since the Merge announcement, the number of ETH that had been staked on Ethereum has increased over the past few months. However, it saw a sudden jump. As of the writing of this post, 13,152,149 ETH had been staked on the Ethereum network. The amount is likely to rise as the deadline draws nearer.
This means more than $20 Billion in ETH has been placed in the ETH 2.0 deposit agreement. Although this may not be the greatest dollar value point, it’s still significant considering the fact that the price is now down 70% from the ATH.
Featured Image from Financial Times. Chart from TradingView.com
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