Immediately following the Merge, Ethereum could experience a significant decline.

Immediately following the Merge Ethereum could experience a significant decline

While the whole Ethereum community is getting ready for the most significant event in its history, some individuals are taking the steps necessary to bring the price of Ethereum down to a level that is lower than even the most pessimistic projections. In an article that was published just about a week ago, we learned that some market analysts have predicted that the worst case scenario will be that the price of Ethereum will drop to the mark of $400 as a result of how the community and the market will perceive the results of the merging.

There are certain difficulties within the network itself as a result of the fact that many users, some of whom own substantial amounts of ETH, utterly reject the idea of switching to the PoS consensus process as the means of reaching a consensus. A few of the more active members of the community have even voiced their suspicions that a substantial number of ETH holders are getting ready for a hard fork that will take place immediately after September 15th.

During the time that these news stories are breaking out and causing a lot of confusion, some very serious things are occurring behind closed doors. Analytical platforms that keep track of the statistics of various cryptocurrency exchanges have begun to notice something strange in the market: certain holders of ETH are shifting their tokens to exchanges in what appears to be preparation for a massive dump on the market.

The price of one ether (ETH) is currently at $1540, but it reached an all-time high of approximately $2,000 during the time that the news cycle was centered on the Merge. The price of $2,000 is a major resistance level that was soon picked up by a number of analysts and large traders. These individuals understand this to be a signal that the asset will most likely not break past this barrier. On the other hand, the accumulation of ETH assets on exchanges signals “death” for many long-term holders and for those who look for a bull run immediately after the event.

It has been confirmed by Santiment that all ETH wallets that are not connected to exchanges have experienced a loss of 11% of their total holdings, while the TOP10 wallets that are connected to exchanges have had a massive influx of 78%. There is widespread belief that these whales will engage in aggressive selling after the integration process has been completed. It’s possible that it might bring the market to its knees and start a very protracted bear market, both of which would be devastating for investors who put all of their eggs in the Ethereum basket. On the other hand, it’s possible that huge sharks want us all to believe that they will sell. What happens in the future is yet unknown.