The leading alternative token, Ethereum, encountered a massive rejection near $1,420 by September 22. ETH lost more than 20% within one week (regardless of the Merge hype). Moreover, the token seemed vulnerable to plummeting beneath the support level of $1,220.
Tales like ‘sell the news’ started to surface after the successful Merge. Indeed, the altcoin suffered intense selling momentum from all angles, especially from retailers.
Ugly Days Ahead
Most of ETH’s selling momentum surfaced from retail sellers. The latest Santiment tweet highlighted the grim event on September 22. It showed Ethereum’s former whales had significantly reduced their supply since the Merge.
The September 15 Merge saw large addresses switching behavior. The tweet showed addresses with 1,000 to 10,000 $ETH have declined by 2.24% of their total holdings over the last six days since the migration to proof-of-stake. Meanwhile, addresses holding 100 to 1,000 tokens have plummeted by 1.41%.
One thing remains certain. Accumulating days leading to the Merge was highly speculative. Moreover, investors didn’t prefer to hold the altcoin following the update, according to Santiment’s graph. Holders trimming the balances, was it a surprise? Probably not.
Nearly half of the Ethereum holders endured massive losses. ETH’s MVRV ratio plunged to -13.6% amid a colossal profitability slump over the previous week.
Besides that, miners joined the bandwagon. ETH miners dumped around 30K $ETH holdings because of price action and the upgraded impact. Indeed, everything points to the deteriorating trader sentiment in Ethereum at the moment, with many reducing their Ether exposure.
Indeed, this market has always had a way out. Does that translate to investor patience? According to ultrasound.money data, Ethereum’s circulating supply hit the top at 120,521,139.31 $ETH as the Merge happened.
However, plunges emerged and the metric decreased by approximately 170 ETH, translating to deflationary conditions for ETH. Meanwhile, the reduced supply shows that increased demand might trigger price surges. Caution remains paramount. Moreover, bears appeared ready to extend their regime. Time will tell.
What are your opinions about Ethereum’s performance since the Merge? Feel free to leave a comment in the section below.