Address outflows from whales are weighing on the ETH price - can the situation improve soon?

Address outflows from whales are weighing on the ETH price - can the situation improve soon?

Address outflows from whales have contributed significantly to the recent bearish price of the cryptocurrency Ether (ETH). A recent alert from Glassnode shows that the number of addresses holding 100 or more ETH has fallen to its lowest level in eight years. This suggests that large wallet holders have withdrawn and possibly sold ETH. Additionally, addresses with at least 1,000 ETH and addresses with more than 10,000 ETH also helped increase selling pressure.

Interestingly, retail buyers with smaller accounts holding at least 0.01 ETH have increased their balances during the same period that whales have been selling. This suggests that ETH’s price performance over the past few weeks has been significantly influenced by the actions of major wallet holders.

A close analysis of the supply distribution shows that addresses holding more than 10 million ETH increased throughout the month. This category also controls the second largest share of circulating supply. However, it is unclear whether these addresses are private addresses or stock exchange addresses.

Despite the bearish price trend, investor confidence remains positive, as shown by the steady rise in weighted sentiment. ETH’s MVRV ratio has also increased and reached its highest level ever. This information correlates with ETH’s current price action.

Although ETH's bearish price has slowed over the past three days, the momentum was not yet strong enough for a significant recovery at press time. The transaction price of ETH was $1,894 at the time of going to press. However, there are signs of a possible recovery in the middle of the RSI (Relative Strength Index) and the MFI (Money Flow Index) has suggested some accumulation. It remains to be seen how the price of ETH will develop in the near future.

Sources:
– Glassnode
– Santiment
– TradingView