Negative ETH price action while holders still eagerly prepare for the upcoming Merge

ETH remains in a bearish zone as it trades below the $1,150 support area at press time. The largest altcoin by capitalization has suffered a fresh 2% correction as it trades close to the $1,000 mark. The price has been trading in this range for quite some time so far.

But will investors profit in the current market structure as the much-anticipated Merge draws closer?

Whatever

Sentiment regarding ETH has improved over the past 3 weeks thanks to the inflow of money into these altcoin-based products. Meanwhile, HODLers took advantage of the opportunity to buy more.

According to Glassnode data, the number of addresses holding more than 10 ETH hit a 16-month high of 149,448.

Source: Glassnode

This clearly shows that HODLers continue to buy dips despite the breakdown. Not only that, they even chose to stake their holdings.

Observing data from Glassnode, the number of addresses with more than 32 ETH rose to a 16-month high of 116,774. To be a validator on Ethereum 2.0, an address needs to have at least 32 ETH. As such, HODLer is leaning towards staking ETH.

Source: Glassnode

The increasing balance of this group of addresses directly contributes to the increase in numbers on Ethereum 2.0. The ETH 2.0 deposit contract also paints a similar picture.

Total value locked in ETH 2.0 deposit contracts continues to record new all-time highs. As of July 13, the number of addresses staking into the ETH 2.0 deposit contract reached 13,024,853 according to statistics. Furthermore, the staking ratio exceeded the 11.5% mark.

In fact, the value of new ETH deposited into the ETH 2.0 deposit contract hit a 1-month high of $21,722,571 (20,544 ETH) according to data from Glassnode.

Eat tit for tat

There is no denying that ETH has seen some dark days in the past and continues to do so. Furthermore, indicators such as ETH’s DeFi dominance as well as a sharp drop in NFT sales raise warning signs of negative price action.

On the one hand, ETH caught the attention of the entire industry because of its low gas fees. On the other hand, it suffered criticism from investors for its negative price action.

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