While Ether had good rally in July, sentiment around coin is not looking so good
Ahead of the September merge update, Ethereum is in a weird place because investors are not yet ready to invest in the network before the fundamental change – because it is not yet clear what kind of effect the PoW switch will have on the main network.
Massive inflows to centralized exchanges is one of the main indicators of high fear among investors who move their holdings to exchanges to sell as soon as they can if something does not go as planned for the new version of Ethereum.
Despite the insecurity of some market players, many Ethereum test environments received the update and did not experience any technical issues. The only thing investors should worry about right now is the unpredictable reaction of the cryptocurrency market.
Luckily, the market reacted more than positively to the reveal of the exact date when the Merge update for Ethereum will go live, as the second biggest cryptocurrency on the market saw a massive 60% price increase in the last two weeks.
Unfortunately, the “revelation rally” was not supported by major retail and institutional investors, which is why Ether is falling back below $1,500.
What do other indicators tell?
While the number of ETH on centralized exchanges is growing exponentially, other indicators show that sentiment around the cryptocurrency is not doing well considering the overall situation on the digital assets market.
Additionally, trader sentiment plummeted even further after the market failed to push the price of the cryptocurrency back above the May $2,000 level. For now, the majority of participants are not expecting anything exceptional from the second largest cryptocurrency until the fundamental update goes live.
