A Huge Number of ETH Holders Sell When Price Struggles Under $2,000
There has been a significant exodus of ETH holders in the past month, as the altcoin has failed to hold its price above $2,000. However, the selling pressure has recently eased, with the price finding support near $1,800.
Previous examples have shown that sharp rallies occur when ETH is no longer under selling pressure. However, after stabilizing at $1,790, this time around the price showed less enthusiasm.
Recent data suggests that whales may be contributing to the hesitancy of ETH bulls. Addresses with over 1,000 ETH don’t seem interested in re-accumulating at this time.
When the supply of ETH is examined, it becomes clear that most of the whale category, with at least 1,000 ETH holdings, have contributed to the selling pressure. Despite this, more than 10 million coins have accumulated in addresses over the last four weeks, accounting for 17.75% of all ETH in circulation.
However, the market impact of these large addresses may be limited due to low numbers or potential affiliation with exchanges.
Surprisingly, Ethereum exchange reserves have seen an outflow, implying they may be staking addresses. In the last month, the number of ETH 2.0 deposits has increased, indicating a growing interest.
Nonetheless, the demand for ETH has slowed down significantly in the past ten days, showing a lack of enthusiasm. Leverage slightly increased in the second week of May, possibly due to short selling. However, this trend has reversed, coinciding with the bears’ loss of momentum.
The current ETH price reflects the market impasse, with a sideways trading pattern that has held around $1,825 for the last five days. Despite the recent discount, ETH bulls are struggling to recoup their losses, mainly due to a lack of demand and confidence. Other leading cryptocurrencies share this sentiment.
While ETH has experienced selling pressure and a lack of enthusiasm from the larger addresses, it remains to be seen how these factors will affect its future performance. Traders and investors should keep a close eye on market trends and developments to gain insight into the potential direction of the ETH price.