Ethereum hits exchanges amidst rising negative sentiment ahead of the Merge


Share:
  • Ethereum outlook among investors has turned negative based on data from Santiment. 
  • There is a spike in inflow of Ethereum to exchanges, increasing the selling pressure. 
  • Analysts believe Ethereum remains at risk of decline, as the altcoin posts nearly 10% losses overnight. 

Ahead of Ethereum’s transition to proof-of-stake, there is a spike in ETH inflow to exchanges. As Ethereum piles up across exchange wallets, analysts note a shift in sentiment among traders. 

Also read: Ethereum is dirt cheap ahead of the Merge, claims analyst

Ethereum supply on exchanges climbs steadily

In the weeks leading up to Ethereum’s transition from proof-of-work to proof-of-stake, the altcoin’s supply on exchanges has climbed steadily. 13.78% of Ethereum’s total supply is on exchanges based on data from crypto intelligence platform Santiment. 

The steadily climbing supply is indicative of an increase in selling pressure on exchanges. With higher Ethereum reserves on exchanges, more ETH is available to sell, putting the altcoin’s price at risk of decline. 

Ethereum supplu on exchanges

Ethereum supply on exchanges 

Sentiment on Ethereum turns negative 

Based on data from Santiment, weighted social sentiment, a metric that combines the positive/negative commentary, and multiplies by the amount of social volume has turned negative. Typically when weighted social sentiment gets too high, it coincides with a price top and when sentiment is negative it coincides with a bottom. 

The weighted social sentiment of Ethereum dropped to -0.54, indicating a shift in sentiment from positive to negative, in the weeks leading up to the merge. 

Weighted social sentiment

Weighted social sentiment 

Analysts predict decline in Ethereum price 

PostyXBT, a leading crypto analyst, identified that Ethereum’s structure has broken down. The analyst argued that 'bounces are for shorting' vibes are back. Ethereum’s market structure and price trend has changed, and the overall outlook is bearish. 

ETH Perpetual Futures Contract

ETH Perpetual Futures Contracts

McKenna, a crypto analyst and trader argues that Ethereum is poised for a liquidity grab once the altcoin plummets below $1,460. FXStreet analysts believe that Ethereum could plummet to $1,284 in order to collect liquidity. For more information and specific conditions, check the video below:

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE’s social dominance and relevance have been increasing since February 20. This week, top cryptocurrency exchanges have shared PEPE and related memes in tweets on their official X handle. 

More PEPE News

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups. The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

More Bitcoin News

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP