Due to the Ethereum blockchain switching to Proof-of-stake (PoS), the market cap of Ethereum (ETH) experienced a large decline. The price of the ETH coin was $1,600 on September 15; at its current price, it has decreased by about more than 20%. These facts show that the ETH coin is currently having trouble as a result of its recent development operations.
A CryptoQuatnt analysis of a recent highlight of events reveals whale behavior that has previously caused an Ethereum price spike. Nevertheless, these price spikes have been swiftly followed by a slump and dump. The ETH Exchange Netflow statistic was taken into account in the analysis, which was conducted by anonymous Korean cryptocurrency trader and CryptoQuant author Crypto Sunmoon.
The ETH Exchange Netflow chart shows that a sharp increase in the NetFlow of ETH in exchanges has consistently led to an increase in the price of ETH. Since 2020, the pattern has persisted.
When Will ETH Price start Rising?
This whole incident, according to the analyst Sunmoon, is the effect of whales pumping the price of the asset by putting huge amounts of Ethereum into exchanges. However, the whales sell their holdings for a higher price after the asset’s price has been pumped. Sunmoon emphasized that when exchange inflow grows, it was a short- and long-term low. Ethereum exchange deposits occasionally climbed during the asset’s short- or long-term lows, as shown on the graph.
Furthermore, the successful switchover of the Ethereum network to PoS coincided with a similarly rapid rise in ETH Exchange Netflow. ETH experienced a sharp decline after The Merge on September 15, when it was trading above the $1,600 support.
In less than two days, the asset fell below the $1,600 and $1,500 support levels before beginning to trade sideways as it became trapped in a brief consolidation in the $1,400 area. Despite this, ETH’s price dropped below $1,400 on September 18 and hasn’t traded above it since.