The crypto community shows increased enthusiasm as the much-anticipated ETH Merge approaches. That has seen Ethereum on an impressive performance over the past week, gaining approximately 8% during the timeframe.
Though several cryptocurrency fans trust $ETH will gain stable upside momentum as the Merge date nears, some believe otherwise. Indeed, some metrics and datasets support a potential price dip for Ethereum ahead of ETH 2.0.
Incoming Bears
The latest evaluation by CryptoQuant’s author Grizzly highlighted possible price dips for the second-largest digital coin.
ETH”s exchange reserve surged within the past few days, revealing a bearish signal. As previous data indicates, such inflow upticks into crypto exchanges usually welcome price declines.
Similar cases emerged in May-June, which triggered a substantial price plunge in Ethereum. The latest development also revealed a similar tendency, with ETH price moving briefly lower.
Nevertheless, a slight respite is the last inflow uptick that helped Ethereum hit the $2,500 level. Thus, it initiates the possibility of upsides ahead of the hyped ETH Merge.
However, multiple on-chain indices also revealed similar bearish actions. ETH’s total active addresses have surged within the previous week.
The concern remains as most sending addresses accounted for the highest number, translating to a bearish sign.
Yin Yang: The Yang Side
Though the highlighted data and analysis confirm downtrends, multiple on-chain indexes favored ETH.
For example, ETH’s active wallets with non-zero $ETH balances hit an ATH recently, which indicates amplified investor confidence in the token as the Merge draws near. ETH’s net exchange deposits remained low than the 7d average.
Such a development conformed to reduced selling momentum. Also, Ethereum’s MVRV ratio hovered at -5.33% during this publication. That indicated that investors could access ETH at discounted prices.
Nevertheless, the Stochastic and the RSI (Relative Strength Index) showed the market exhibited a neutral state. That means things could fluctuate in any direction.
While publishing this post, ETH changed hands near $1,655.48. The alternative token printed impressive movements within the past day (despite the struggling markets).
ETH gained 6.01% within the last 24 hours, whereas the dominant Bitcoin surged 0.83% in that timeframe to trade at $19,936.07.
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