() same market continued to sink in red after witnessing a short-term gain. However, despite the cautionary tales and price headwinds, many stakers and holders continue to build castles. after The Merge.

In the years leading up to the historical change of Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (), there were many optimistic predictions about the price but all were ultimately unsuccessful. The much-anticipated The Merge went live on September 15 – just two days after US CPI data, sending prices reduced nearly 20%.

However, on-chain activity points to a healthier picture in some areas.

Investor confidence is growing

Recent data of reported that more than 11,36K validators were online in September alone, showing growing investor confidence as The Merge's technical challenge risks decrease.

Ethereum 2.0 Deposit Contract Hits New ATH

Authenticator ETH work | The source:

As of mid-September, Ethereum had over 429.6k active validators on the network. Additionally, growing interest from newbies is also seen in the number of new validators out there. Over the past 6 months, the number of new validators has increased markedly in the lead up to and after The Merge.

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One of the most notable developments is that around 150,000 ETH, worth $195 million, were staked in the past week. This results in the Total Value in the Deposit Contract reached a new all-time high (ATH) of 13,919,623 ETH.

Ethereum 2.0 Deposit Contract Hits New ATH

Total value in deposit contract | Source: Glassnode

The activity of institutional investors begins

The number of transactions greater than $100,000 on the Ethereum network is in an uptrend. The large trade volume is an indicator that acts as a proxy for the trading volume of whales and institutional players.

Ethereum 2.0 Deposit Contract Hits New ATH
Large number of transactions on the Ethereum network | Source: Into The Block

Thus, while whales and institutions appear to be returning to the network as large transactions spike, the retail side is still slowing down due to the price drop following The Merge.

Can a trend reversal be expected?

On September 23, the market finally breathed a sigh of relief when assets The tops see some gains on their short-term chart.

ETH has established its first green candle on the daily chart at press time, showing a positive signal. In addition, the recovery of the Relative Strength Index (RSI) after the oversold condition also indicates a decrease in selling pressure.

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However, a trend reversal remains questionable considering ETH's 27% price drop since The Merge.

Ethereum 2.0 Deposit Contract Hits New ATH
ETH price chart/ | Source: Trading View

Despite the positive activity from stakers and whales, ETH still faces some important resistance ahead. The In/Out of Money indicator shows that ETH faces stiff resistance at the $1,542 mark, where 5.39 million addresses hold over 25 million ETH.

Ethereum 2.0 Deposit Contract Hits New ATH
ETH Global In/Out of the Money Indicator | Source: Into The Block

In the near-term, if the bulls can push ETH price past $1,542, the next key resistance area will be at the $2,500 mark, where 6.6 million addresses previously bought 22.5 million ETH.

However, in the event of another headwind, ETH price could drop to the $1,200 support level.

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