Crypto eduEthereum

New Data Suggests Ethereum (ETH) May Face a Surge in Volatility”

The active deposits on the Ethereum network have hit an eight-month high.

This measurement indicates the total number of incoming and outgoing transactions involving deposit addresses, accounting

for both user-to-exchange and deposit-to-exchange transactions, such as from a personal wallet to

a deposit address or from a deposit address to the main exchange wallet.

Santiment’s latest data analysis suggests that the recent surge in active deposits on the Ethereum network could indicate an upcoming period of volatility for the cryptocurrency’s price.

If this is the case, the increased price movements could have a similar impact on Ethereum as

the blockchain’s highly anticipated transition from PoW to PoS during Merge, as well as the collapse of FTX.

Despite the widely expected 25 basis point interest rate hike by the Fed, Ether’s price has remained

trapped in a tight range with low trading volume.

The Shapella upgrade also failed to attract bullish sentiment, with the asset only up by 3% since the event

on April 12th.

What’s in store for Ethereum?

Although it is uncertain which direction Ethereum’s price will move in the near future, data indicates

that there is increased selling pressure on the asset.

Over the past two weeks, there has been a significant sell-off of ETH by whales holding between 1,000

and 10,000 ETH, leading to a suppression in the asset’s price.

In addition, over the past two weeks, there has been a massive offloading of tokens by whales holding

1,000 to 10,000 ETH, which could have contributed to the suppression in the price of ETH.

Furthermore, on May 2nd, there was a transfer of $505 million worth of ETH to crypto exchange Binance, a level of exchange inflow that was last seen before the Merge. Typically, when investors deposit their ETH tokens on exchanges, it is seen as a bearish indication.

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