Ahead of the September Merge update, Ethereum is in a strange position as investors are not yet ready to invest in the network before fundamental changes – as it is not yet clear what effect the PoW switch will have on the main network.
The huge influx of funds to centralized exchanges is one of the main indicators of intense fear among investors who are moving their assets to exchanges to sell them as soon as possible if something does not go as planned for the new version of Ethereum.
📊 Like #Ethereum Traders are waiting for the September transition to the Proof-of-Stake consensus mechanism, but there are still hints of where we will go now and then. negative sentiment and $ETH switching to exchanges is a couple of things to look out for in our latest review! https://t.co/uOF7h58P3X pic.twitter.com/4RramKIVpW
— Sentiment (@santimentfeed) July 26, 2022
Despite the uncertainty of some market participants, many Ethereum test environments received the update and had no technical problems with it. The only thing that investors should worry about now is the unpredictable reaction of the cryptocurrency market.
Fortunately, the market reacted more than positively to the announcement of the exact date when the Merge update for Ethereum will be launched, as the price of the second largest cryptocurrency on the market has increased by 60% in the past two weeks.
Unfortunately, the “disclosure rally” was not supported by larger retail and institutional investors, so Ether fell below $1,500 again.
What do other indicators say?
While the amount of ETH on centralized exchanges is growing exponentially, other indicators show that the mood around the cryptocurrency is not the best, given the overall situation in the digital asset market.
In addition, the sentiment of traders fell even lower after the market failed to push the price of the cryptocurrency above the May level of $2,000. At the moment, most participants do not expect anything exceptional from the second largest cryptocurrency until a fundamental update comes out.
Credit : u.today