Ethereum whales are giving up their ETH as the price drops below $ 4,000, data shows

Ethereum is having a hard time keeping its richest investors in checkas its native token Ether (ETH) indicates short-term losses.

The blockchain data analytics service Glassnode has revealed this the number of Ethereum addresses with at least 1,000 ETH fell on Monday to 6,292, the lowest value since April 2017. At its high for the year so far, it was 7,239 in January.

Number of Ethereum addresses with a credit of at least 1,000 ETH. Source: Glassnode

On-chain analysts often look at ETH assignments across directorates to gauge sentiment in retail and institutional settings. You think wallets with more than 1,000 ETH (approx. 3.92 million US dollars) are “whales”, “???? mainly due to its ability to influence interim market trends through large sell and / or buy orders.

Ethereum whales are giving up their ETH as the price drops below $ 4,000, data shows
Ethereum whales are giving up their ETH as the price drops below $ 4,000, data shows

However, as the numbers of these so-called whales are declining, it reflects an ongoing sales trend among wealthier Ethereum wallet owners.. For example, the number of Ethereum addresses with a balance of at least 10,000 ETH (or about $ 39.20 million) has plummeted from 1,208 in June to 1,156 at the time of this writing, a decrease of nearly 4.5% .

Number of Ethereum addresses with a credit of at least 10,000 ETH. Source: Glassnode

But, In a period of one year so far, the numbers have risen from 1,065 to 1,156, as the cost of buying 1 ETH has increased by almost 450% over the same period.

Small investors are piling up

Unlike whales, Wallets with small ETH amounts topped the price rally for Ether in 2021.

For example, data from Glassnode shows that the number of Ethereum addresses with an ETH balance not equal to zero reached an all-time high of over 71.23 million on Monday. These include wallets with at least 0.01 ETH (~ $ 40), the number of which has increased from 10.66 million to 20.31 million earlier this year.

In the meantime, Addresses with at least 0.1 ETH (~ $ 400) rose to 6.44 million on Monday, up from 3.62 million on January 1, 2021. That’s almost a double increase, suggesting greater interest from retailers in the world’s second largest cryptocurrency.

Number of Ethereum addresses with a credit of at least 0.1 ETH. Source: Glassnode

ETH is aiming for an upward trend reversal

The final descent of the Aether Whales appeared when Ether struggled to close well above $ 4,000, its psychological resistance level.

On Tuesday, ETH / USD fell more than 3.27% to an intraday low of $ 3,880. His fall came as part of a larger correction which began after Ether tested a descending trendline as resistance on December 23rd.

The graphic below shows this the trendline is part of a descending channel that looks like a “descending wedge”.

ETH / USD daily price chart showing the falling wedge. Source: TradingView

In detail, Descending wedges are technically bullish reversal patterns that appear after price tends to fall within a trading range that has two converging trend lines. In the end, the instrument breaks above the top trendline of the structure before or after it reaches the apex (where two trendlines converge).

The profit target in a rising wedge scenario is generally achieved after adding the maximum distance between the top and bottom trend lines of the structure to the breakout point. The ETH price is thus well on the way to the USD 4,200 to 5,000 range, depending on your breakout level.

ETH / USD daily price chart with falling wedge targets. Source: TradingView

But still, The ether price still has enough headroom to drop towards USD 3,200 in the worst case. The level is where the wedge trend lines converge.

Meanwhile, the independent market analyst Pentoshi® He saidThat nothing concrete can be predicted for Ether at the moment, as it is still between a zone “fought over by bearish momentum” and one “fought over by bullish dynamics”, as shown in the graphic below.

ETH / USD three day price chart. Source: TradingView, Pentoshi

â € œMaybe it is the ground. I do not care,to???? tweeted Pentoshi on Tuesday.

“I don’t like it when the market offers so often to buy an area with such an important historical context. I’d rather pay for the confirmation. “

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Every investment and every course of business carries risks, so you should do your own research when making your decision.

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