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Ethereum (ETH) Could be Hit by New Wave of Volatity: Data

AA News - Chayanika Deka 2023-05-07 21:45

Ethereum network’s active deposits have reached an eight-month high. This metric depicts the total number of all incoming and outcoming transactions involving deposit addresses and accounts for both user-to-exchange transactions – from a personal wallet to a deposit address, as well as from a deposit address to the main exchange wallet.

  • According to the latest data compiled by crypto-analytic Santiment, the deposits hitting an eight-month high could potentially foreshadow volatility in Ethereum’s price.
  • In such a case, the enhanced price movements are likely to have a similar effect on the asset to that of the blockchain’s highly anticipated transition from PoW to PoS during Merge, as well as the FTX’s collapse.
  • The volatility forecast comes as Ether’s price remained trapped in a tight range amid low trading volume, unfazed by the Fed’s widely expected 25 basis point interest rate hike.
  • The Shapella upgrade also failed to charm the bulls, as the asset is up by a mere 3% since the event on April 12th.
  • While it is unclear as to the direction Ether’s price will be swayed in the near term, data suggest increased selling pressure on the asset.
  • ETH suppression in the price comes as whales holding 1,000 to 10,000 ETH offloaded a massive amount of tokens over the past two weeks.
  • Moreover, ETH also saw the transfer of $505 million to crypto exchange Binance on May 2nd. This level of exchange inflow was last seen before the Merge. Investors depositing their ETH tokens on exchange is typically a bearish indication.

The post Ethereum (ETH) Could be Hit by New Wave of Volatity: Data appeared first on CryptoPotato.