Ethereum remains under selling pressure despite positive price performance previously
Ethereum’s most recent rally may not reflect the true intentions of traders and investors as we see the huge influx of ETH on centralized exchanges. The positive net flow on an asset generally shows a prevalence of selling over buying.
Reportedly, $822 million were sent to various exchanges by Ethereum traders despite the positive price performance on the asset in the previous days. The large inflow reflected on the chart as Ethereum has lost around 10% of its value in the last two days.
After the retracement, Ether failed to breach the upper border of a descending triangle, possibly plunging in the days or weeks ahead. Previously, Ethereum bounced off the $1,700 support level.
Beacon chain reorganization strikes fear
Previously, the test network of Ethereum, Beacon chain, faced a serious issue with block reorganization, which could have caused a replay of all DEX-trades, oracle updates and liquidations that have happened in the last seven weeks.
Since the issue occurred on the testnet, no damage was done directly to the mainnet. But at the same time, if something like this had happened in a major network, the damage caused by the bug would have flowed directly to users, causing millions in losses.
Ahead of a switch to the proof-of-stake consensus mechanism, the block reorg issue is not a good look for the network and all Merge advocates.
Nevertheless, some Ethereum developers believe that there will be no such issues in the future when the implementation of various updates and patches on the network are taken more seriously.
At press time, Ethereum trades at $1,825 and has gained around 0.5% to its value in the last 24 hours.
