Ethereum [ETH]’s much-awaited “Merge” is here. And it is here to create the much-anticipated shift in paradigm i.e. the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Much has been said about ETH’s merger, however, how has the token faired amid the ongoing changes to the network? Let’s find out…
A gloomy day for ETH?
On 9 June, Ethereum developers successfully merged the Ropsten testnet with the beacon chain, and changes to the execution layer are expected to come at a later stage. However, the ETH token didn’t seem to be quite affected by the movements on the network.
At the time of writing, the ETH token stood at a value of $1,666 and has been trading 6.9% lower in the last 24 hours. The Relative Strength Index (RSI) also stood at 34.09, indicating that losses are greater than the gains of the token. The Awesome Oscillator (AO) too flashed a red bar after a series of green bars, but all below the zero line.
Source: TradingView
Wait…there’s more!!
As per data from Glassnode, ETH’s Exchange Netflow stood at a positive value of $24.8 million, indicating that more and more people are sending in their tokens into exchanges than sending out of exchanges.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $843.6M in
⬅️ $928.5M out
📉 Net flow: -$84.9M#Ethereum $ETH
➡️ $632.9M in
⬅️ $608.1M out
📈 Net flow: +$24.8M#Tether (ERC20) $USDT
➡️ $398.3M in
⬅️ $410.1M out
📉 Net flow: -$11.8Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) June 11, 2022
To add to the aforementioned information, the ETH miner revenue also hit a 16-month all-time-low of $929,437. The last ETH mining revenue all-time-low of $937,486.36 was recorded on 27 June 2021.
📉 #Ethereum $ETH Miner Revenue just reached a 16-month low of $929,437.91
Previous 16-month low of $937,486.36 was observed on 27 June 2021
View metric:https://t.co/Wr0bMKQqt8 pic.twitter.com/130jocgDaT
— glassnode alerts (@glassnodealerts) June 11, 2022
The ETH MVRV ratio also dropped below one and stood at 0.99 indicating that the token is held at a severe loss and that the bears capturing ETH are stronger than ever. As per additional data, the NVT ratio of the token, on 10 June, further stood at 43.28 thus strengthening the ETH bears at the time of writing.
The performance of the token on a social front wasn’t its best either. The social dominance of the ETH token stood at a high of 12.14% keeping in mind the disappointing performance of the token. Furthermore, the social volume of the token also stood at 1,496 ETH at the time of writing.
Source: Santiment
Talk of the Twitter town…
Despite the not-so-impressive performance of the altcoin king, investors of the token are trying to look beyond the ongoing bloodbath and focusing on the ETH 2.0 unlock. One such crypto holder was Lark Davis who posted in favor of the ETH on 11 June.
I am still holding a portion of my #ethereum in $steth. Short term depeg from $eth does not change the value on ETH 2.0 unlock.
— Lark Davis (@TheCryptoLark) June 11, 2022
Another crypto investor, The Martini Guy, took low ETH as an opportunity to stack up more of the token.
I am stacking cheap #Ethereum
— That Martini Guy ₿ (@MartiniGuyYT) June 10, 2022
Thus, investor sentiment remained positive and bullish on the whole despite the disappointing performance of the token. But will the token run towards the bulls? Only a matter of time till we find out…