After completing its second upgrade, the Shanghai upgrade, on April 12, Ethereum was above $2,000.
However, after the declines, ETH, which could not rise above this level again, is at the level of $ 1,900.
While investors were waiting for more than $ 2,000 in ETH again, a volatility warning came from Santiment for ETH.
Stating that investors are actively investing ETH on exchanges, Santiment said that Ethereum's active deposits have reached the highest level in 8 months.
Noting that this level means volatility for ETH, Santiment stated that the same situation was experienced during the Merge upgrade and the collapse of FTX.
“Ethereum's active deposits just hit an 8-month high.
While investigating the most likely cause, we can now say that this will herald the upcoming increased ETH volatility, similar to the result of the spikes during the collapse of Merge and FTX."
Accordingly, Santiment believes that this increase in ETH active deposits will soon signal the increased volatility of the Ethereum price.
He added that this could be similar to the impact of the Merge upgrade and the collapse of FTX in early November 2022 on the price of ETH.
😮 #Ethereum's active deposits just hit an 8-month high. As we research the most likely cause, we can currently state that this likely will foreshadow upcoming increased $ETH volatility, similar to the result of spikes during the #merge & #FTX collapse. https://t.co/aBeHQudM52 pic.twitter.com/oHeypfUPvJ
— Santiment (@santimentfeed) May 5, 2023
*Not investment advice.