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The Ethereum Merge drama intensifies as its launch nears the D-day
The Ethereum Foundation recently launched the official launch date of the Merge blockchain upgrade to a proof-of-stake consensus mechanism. The Bellatrix upgrade will be activated on the Beacon Chain within the first week of September; this initiative will be responsible for setting the rest of the Merge upgrade in motion. During this period, the difficulty level of ETH mining will definitely increase to the point where proof-of-work crypto mining will no longer be possible. The Merge is coming after long speculations of the upgrade being repeatedly postponed and investors imagining it to be a distraction to avoid facing the real complications that Buterin has to face while answering about the high transaction fee problems on the ETH network. There have been several tests before the Ethereum Merge upgrade including Ropsten, Sepolia, and Goerli.
There might be several speculations and rumors about the Ethereum Merge upgrade, but it has undoubtedly become a bullish enthusiasm in terms of token price and market sentiments. But experts claim that by the time the Merge is released, investors will have already lost their interest in the upgrade, which might even lead to a sharp decline in the token price in the holdings of a significant number of ETH whales.
Reports from crypto analytics firm Santiment claim that the difference between Ethereum’s top 10 largest non-exchange addresses and exchange addresses is closing in. While non-exchange addresses have declined by over 11%, exchange-based addresses have surged by 78%. And since ETH whales seem to be depositing their tokens over to exchange addresses, investors are worried if they should prepare for the worst or not!
Ethereum is Expected to Plummet After the Merge Upgrade Launch
Basically, the flow of crypto onto exchanges generally indicates bearish sentiment is generally done by traders to take a profit by selling off their tokens, possibly indicating that whales expect the price to plummet in the near future. Now the real question that disturbs investors is how low are whales expecting the ETH price to decline. Market analysts believe that the launch of the upgrade will welcome more Merge-focused trades, but this speculated backwardation will likely resist investors from making riskier investments like ETH spot or futures. They also think that more than creating a sustainable infrastructure for investment, the Merge will only sell the news of ETH being sustainable and more affordable. It is good news for short-term investors since its price will surge, but only for a short period. A similar event can be witnessed just a few weeks ago, when the probable launch news of Ethereum Merge helped the entire crypto market to surge, but then all cryptocurrencies declined to their original resistances.
The Ethereum Merge upgrade will introduce several advanced benefits to the network that will increase the transaction speed, reduce gas fees, and triple the earnings via crypto staking. Expectations are high with the Merge upgrade. Ether’s price has been expected to skyrocket despite being in a bear market condition, but volatility persists to haunt investors.