The Ethereum [ETH] network was widely covered in the media just before the FTX fiasco. This was due to a substantial update that was planned for the second-largest cryptocurrency. The entire ecosystem saw a significant shift as the Ethereum network transitioned into the proof-of-stake [PoS] sphere. Here is how the Merge affected the ETH network three months had gone since this upgrade.
The Ethereum network’s whales and sharks were on an accumulating binge, according to statistics compiled by Santiment. It was shown that huge ETH addresses have seen an increase in the total supply almost a month earlier. Since November 7, addresses involving between 10,000 and 1,000,000 ETH have increased the overall supply from 1.36 percent to 2.09 percent.
Santiment continued by praising this increase as a bullish hypothesis for the asset. Similar to this, the long-term addresses’ average return indicated bullishness. The 365-day trading returns are currently at -30%, although it should be noted that these holders were still experiencing “huge amounts of anguish.” The network is regarded as stable as long as this is more than -25 percent.
It should be highlighted that some Ethereum holders have continued to lose 50% of their investment since ETH reached the $5,000 threshold. The Santiment wrote further on mid-term traders and ETH movement,
“mid-term traders could still see prices moving either way. Late November is where prices bottomed out, and the asset is actually +17% since November 22nd. To many, it certainly doesn’t feel this way, however. Because of the long-term upside indicated by MVRV, this metric points to bullishness.”
Ethereum’s Social Strength Plunges
The image below shows how Ethereum’s social standing has been deteriorating. But this wasn’t just restricted to ETH. Comparative to November 2021, the enthusiasm for the asset’s rivals was also waning.
This wasn’t actually a negative thing, Santiment said. The paper called out the “tourists” of the sector, stating that “since it’s a natural progression of weak hands dropping out of crypto in general.”
Sadly, though, Ethereum received less attention than other well-known assets. Since late October, interest in ETH has actually been at its lowest level since December 2020 when compared to the top 100 crypto assets.
The lack of interest since the merger, according to Santiment, “is indicative that whales could push up prices with little resistance,” which was still another positive omen.
Even if the majority of indications were positive, the network’s actual profit and loss showed otherwise. It was highlighted that the three-week spike in Ethereum’s price resulted in more short-term profit-taking than short-term losses. This was also related to the rise in realized profits from the previous day. The fact that it was the largest daily gain in more than three months should be emphasized.
Santiment emphasized the likelihood of history repeating itself once more. Previously, ETH’s price fell by 19 percent over the course of four days during the previous significant realized profit increase following the Merge. As a result, this can be a bearish signal.
However, ETH was priced at $1,287.52 with a hike of 0.29% over the last 24 Hours.