Ethereum network’s active deposits have reached an eight-month high. This metric depicts the total number of all incoming and outcoming transactions involving deposit addresses and accounts for both user-to-exchange transactions – from a personal wallet to a deposit address, as well as from a deposit address to the main exchange wallet.
According to the latest data compiled by crypto-analytic Santiment, the deposits hitting an eight-month high could potentially foreshadow volatility in Ethereum’s price.
In such a case, the enhanced price movements are likely to have a similar effect on the asset to that of the blockchain’s highly anticipated transition from PoW to PoS during Merge, as well as the FTX’s collapse.
The volatility forecast comes as Ether’s price remained trapped in a tight range amid low trading volume, unfazed by the Fed’s widely expected 25 basis point interest rate hike.
The Shapella upgrade also failed to charm the bulls, as the asset is up by a mere 3% since the event on April 12th.
While it is unclear as to the direction Ether’s price will be swayed in the near term, data suggest increased selling pressure on the asset.
ETH suppression in the price comes as whales holding 1,000 to 10,000 ETH offloaded a massive amount of tokens over the past two weeks.
Moreover, ETH also saw the transfer of $505 million to crypto exchange Binance on May 2nd. This level of exchange inflow was last seen before the Merge. Investors depositing their ETH tokens on exchange is typically a bearish indication.
The post Ethereum (ETH) Could be Hit by New Wave of Volatity: Data appeared first on CryptoPotato.
