According to data provided by datafeeds and content streams platform Santiment on October 16, large Ethereum investors are aggressively selling off their holdings and have already made sales totaling more than $4.2 billion over the course of the last five weeks. The price reduction of 25% that we observed in the middle of September might have been caused by the significant amount of selling pressure that was taking place.
According to the movement of the asset prior to the 25% correction, these primary stakeholders provided the majority of the reason for the purchase of ETH on the market. The pattern of those stakeholders served as a precursor to the price performance of Ethereum. The price of Ethereum has been on an upward trend while the same group of investors has been hoarding coins rather than redistributing them. This suggests that the price performance of Ethereum was foreshadowed by the activity of those stakeholders.
The number of addresses that possess between 100 and 1 million ETH indicates that whales have sold more assets than they acquired between the beginning of August and the beginning of September. A price drop is pretty rare, and it could mean that prices will go down even more in September.
Some of the more prominent players are of the opinion that the very high volume of ETH sales may have been the impetus behind the Ethereum Merge upgrade that was implemented at the end of September. The merger does not solve the high costs or congestion seen on Ethereum. Instead, it only prepared the basis for further infrastructure that, in the years to come, may be able to tackle the difficulties that it is facing. Those who thought Ethereum would trade differently or look very different were disappointed.
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