State of Ethereum Investors With “The Merge” On Horizon – Here’s What On-Chain Metrics Says
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The crypto market has been in turmoil since the start of 2022 and though the market has been able to retrace, the balances on the exchange platform are increasing.
Among many such currencies, Ethereum is experiencing a surge in the exchange’s supply count. As per the analytics firm, Santiment, the exchanges have experienced deposits from holders since the start of the 2022 bearish market.
Also, the firm’s data indicates that the ratio between non-exchange and exchange’s top addresses marked a one-year low.
#Ethereum has seen its supply held by top exchange addresses rise, which makes sense with traders dumping their holdings on to large exchanges during the 2022 slide. Watch for a decline in top $ETH exchange address holdings as a #bullish signal. https://t.co/NPq4J018bn pic.twitter.com/Y9Q1vMfn14
— Santiment (@santimentfeed) August 3, 2022
Ethereum Sees A Shift In Market Sentiments
On the other hand, as the exchanges have started to enter a positive zone, there is a shift in the sentiment.
According to Glassnode, another data analytic firm, Exchange Inflow Volume (7d MA) has hit a 1-month low of 10,187 ETH. Earlier on August 2, another low was seen as 7d MA had reached 10,281 ETH
This shift in market sentiments is influencing other metrics as well. The transaction fee as per the Santiment data is still in an extremely low range. This hasn’t changed despite there being an increase in Ethereum’s price level.
It indicates that ETH’s price surge has failed to influence investors’ faith in Ethereum. However, the lead altcoin’s average fee level might see a leg up before FOMO enters the crypto space.
#Ethereum's transaction fees have remained ultra low despite the price jump since mid-June. Scarcer circulation has played a big role in the lower costs, and fees can be expected to remain reasonable until a fair degree of #FOMO kicks in from the crowd. https://t.co/mN3CQOhCo4 pic.twitter.com/t3bCibhWvN
— Santiment (@santimentfeed) August 2, 2022
The next indicator that shows a shift in its sentiment is the NVT ratio. The data from Glassnode reveals that NVT Ratio (7d MA) has surged to a 1-month high of 2,677.2, yesterday August 3.
While the Ethereum network is preparing for September’s merge, this bullish signal is posing a strong positive indication.
Also, the Ethereum price has seen an expansion since July. However, at the time of writing, Ethereum is trading at $1,632 as the currency has fallen by 0.15% over the last 24hrs.
