Ethereum Price Faces Declining Interest and Market Shifts Post-Merge

Ethereum's growth path after the Merge has become a cause for concern as its collecting pace substantially decreased. Alphractal data demonstrate that Ethereum holders of different durations ceased their buying behaviors starting in September 2022.

Ethereum’s market performance has come under scrutiny as key metrics indicate waning interest from holders and a decreasing leverage ratio. However, despite the broader market uncertainty, large stakeholders like World Liberty continue to add to their Ethereum holdings.

Meanwhile, ETH price saw a 5.22% increment over the past 24 hours, reaching $2,707.75, maintaining a solid price range between $2,159.28 and $3,743.94 in the past 30 days. This price movement highlights the token’s resilience and ongoing investor interest, suggesting it remains a strong contender in the market.

Ethereum Price Shows Declining Interest, Market Shifts Post-Merge

Ethereum’s growth path after the Merge has raised concerns as its collecting pace saw a substantial decrease. Alphractal data shows that Ethereum holders of varying durations ceased their buying behavior starting in September 2022.

The proof-of-stake network upgrade may have impacted investor sentiment, leading to the decreasing token interest. Ethereum’s top crypto market position faces uncertainty as the market demand has failed to instill future price stability.

Large cryptocurrency investors showed a clear decrease in buying activities in the market. Together with former miners and wallets holding over 100,000 ETH coins, exchange addresses also saw a drastic reduction in their purchasing behavior in the market.

According to the Ethereum supply data, staking activities saw a decrease. The size of the token supply pool that is trading freely continues to grow, while the amount of tokens participating in staking continues to decline.

The market stability of Ethereum faces potential risk with the increased liquid ETH supply, which could generate market volatility effects.

Ethereum’s Leverage Ratio Declines, Indicating Caution Among Traders

Analysis of the leverage ratio in Ethereum indicates changing market moods as it saw a significant decrease recently. The CryptoQuant data shows the leverage ratio increasing to 0.65 during November 2022, only to fall to approximately 0.55 at the start of January 2023.

The reduction in borrowing activity occurs as traders avoid using leveraged positions despite Ethereum’s price maintaining a $3,200 price range. Following an increase in the risk of liquidation, stakeholders show greater caution through a reduction in their trading activity. The market uncertainties drive traders to decrease their exposure levels across their positions.

The reduction in leverage activity will lead to decreased price volatility across the token since aggressive betting with borrowed money produces excessive market shifts.

Ethereum’s Price Path to Altseason, Role in the Market Cycle

Ethereum’s market cycle evolution continues as the altseason path transitions toward its second developmental phase. The initial phase of market flow primarily entered Bitcoin and triggered price surges, but Ethereum failed to match the performance.

The latest phase shows Ethereum surpassing Bitcoin, yet investors speculate about Ethereum’s ability to surpass Bitcoin in a move known as the “flippening.”

Market participants have started shifting a part of their Bitcoin investment towards Ethereum as they conduct notable purchasing activities in large-cap cryptocurrencies that include Ethereum.

The market’s shifting attention has initiated phase three, which shows Ethereum, together with other major assets, experiencing accelerated growth. The token receives major financial support because it represents the market’s leading position.

Mid and low-cap altcoins will experience their price peaks in the fourth phase of altseason through widespread speculation, which produces market bubbles. As Ethereum gains dominance, it supports overall market expansion through sustained growth of large-cap tokens, which triggers renewed price escalation within smaller altcoins.

Trump’s World Liberty Increases Its Ethereum Holdings Amid Market Uncertainty

Recent strategy at Trump’s World Liberty has shown continued growth in Ethereum assets through the acquisition of 1,826 ETH, which amounts to $5 million in market value. World Liberty now possesses 61,114 Ethereum tokens that loosely correspond to a total worth of $205 million.

World Liberty believes in the long-term network potential of Ethereum price as it purchased the cryptocurrency at an average price of $3,354 despite its price declines in the unpredictable market.

The market uncertainty exposed World Liberty to a $31 million financial loss, which demonstrates the risks of Ethereum position management. Apart from its previous buying activities, World Liberty continues to demonstrate involvement in the Ethereum market by transferring 86,296 ETH, valued at $235 million, at one point.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading