Ethereum (ETH) could be affected by a new wave of volatility: data

Active deposits on the Ethereum network have reached an eight-month high. This metric represents the total number of all inbound and outbound transactions involving deposit addresses and accounts for user-to-exchange transactions, from a personal wallet to a deposit address, as well as from a deposit address to the main exchange wallet. .

• according to the latest data Compiled by crypto analytics Santiment, deposits reaching an eight-month high could herald volatility in the Ethereum price.
• In such a case, the enhanced price movements are likely to have a similar effect on the asset as the highly anticipated blockchain transition from PoW to PoS during the Merge, as well as the FTX crash.
• The volatility forecast comes as the Ether price remained stuck in a tight range amid low trading volume, unfazed by the widely expected 25 basis point interest rate hike from the Federal Reserve.
• Shapella’s update failed to charm bulls either, as the asset is up just 3% since the April 12 event.
• While it is unclear which direction the Ether price will move in the near term, the data suggests further selling pressure on the asset.
• ETH price suppression occurs when whales hold between 1,000 and 10,000 ETH Discharged a large amount of tokens in the last two weeks.
• In addition, ETH also saw the transfer of $505 million for the Binance cryptocurrency exchange on May 2. This entry level exchange was last seen before the Merger. Investors depositing their ETH tokens on the exchange is usually a bearish indication.