Ethereum (ETH) Could be Hit by New Wave of Volatility: Data
Ethereum’s active deposits on exchanges have reached an eight-month high, according to data compiled by crypto-analytic Santiment. This metric depicts the total number of incoming and outgoing transactions involving deposit addresses, including user-to-exchange transactions and exchange wallet transfers. This surge could potentially indicate future volatility in Ethereum’s price, similar to the effect that the transition from PoW to PoS during the Merge, as well as the FTX’s collapse, had on the asset.
Despite low trading volume, the asset’s price has remained largely unchanged. Ether’s price has been fluctuating in a tight range, unfazed by the Fed’s 25 basis point interest rate hike. Additionally, the Shapella upgrade on April 12th failed to bring in buyers, as the asset is only up by a mere 3% since.
However, data suggests increased selling pressure on the asset, with whales holding 1,000 to 10,000 ETH selling a massive amount of tokens over the past two weeks. ETH also saw the transfer of $505 million to crypto exchange Binance on May 2nd, which was last seen before the Merge. Such exchanges inflows are typically a bearish indication.
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Ethereum (ETH) Price
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About The Author
Chayanika Deka has been working as a financial journalist for three years. She is a graduate in Political Science and Journalism, with her interests lying in regulatory implications in the crypto realm, with a focus on technological evolution. You can contact her via LinkedIn.
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According to https://cryptopotato.com/ethereum-eth-could-be-hit-by-new-wave-of-volatity-data/
The material in this article is written on the basis of another article.