Ethereum addresses fall to 8-month lows, but all’s not lost

Ethereum addresses fall to 8-month lows, but all’s not lost

  • Address outflows from whales contributed heavily to ETH’s latest sell pressure.
  • Some whales are re-accumulating, but it may not be enough to turn the ship around.

Ethereum [ETH] has been on an overall bearish trajectory for the last seven days – an outcome that saw it shed last month’s gains. But what has been driving this bearish retracement?

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Outflows from whale addresses may have largely contributed to ETH’s downside. A recent Glassnode alert offered some confirmation. It revealed that the number of addresses holding 100 or more ETH recently fell to their lowest level in the last eight years.

📉 #Ethereum $ETH Number of Addresses Holding 100+ Coins just reached a 8-month low of 46,125

View metric:

— glassnode alerts (@glassnodealerts) July 21, 2023

The Glassnode alert warrants a look at whether other whale categories have been contributing to sell pressure. We found that addresses holding at least 1,000 ETH and those above the 10,000 ETH (Denoted by blue and black respectively) have been trimming their balances.

In other words, they have been contributing to the downside.

ETH address activity

Source: Glassnode

We also found something interesting. Retail buyers (smaller accounts) holding at least 0.01 ETH have increased their balances overall. This is during the same period that whales have been selling off some of their ETH.

In other words, ETH’s price action in the last few weeks has been significantly influenced by whale games.

One in the chamber?

We looked into the supply distribution which collaborates with the Glassnode address activity analysis above. However, we observed that addresses holding over 10 million ETH have been growing during the month.

In addition, the same whale category controls the second largest share of ETH in circulating supply.

ETH supply distribution

Source: Santiment

It was unclear whether the aforementioned address category represented private addresses or exchange addresses. Aside from that, addresses holding between 1,000 and 100,000 ETH shifted in favor of accumulation in the last 24 hours.

Also, investor confidence remained favorable for the bulls, judging by the steady rise in weighted sentiment.

ETH mean coin age and weighted sentiment

Source: Santiment

ETH’s MVRV ratio has also been steadily rising during the last four months and was at its highest level during the same period. The above information coincided with the latest price action.

How much are 1,10,100 ETHs worth today?

ETH’s bearish assault slowed down in the last three days, but the press time momentum was not yet strong enough for a substantial bounce back.

ETH exchanged hands at $1894 at press time. It was, at press time, showing signs of a potential bounce back at the RSI mid-point. Moreover, the MFI has already indicated that there has been some accumulation in the last few days.

ETH price action

Source: TradingView

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