There has been a significant exodus of ETH holders in the last month, as the altcoin has failed to maintain a price above $2,000. However, the selling pressure has recently subsided, with the price finding support near $1,800.
Previous instances have shown that a sharp rally ensues when ETH is no longer under sell pressure. However, after stabilizing at $1,790, the price showed less enthusiasm this time.
Recent data suggests that whales may be contributing to ETH bulls’ hesitation. Addresses with more than 1,000 ETH appear uninterested in re-accumulating at this time.
When the supply of ETH is examined, it is clear that most whale categories, with at least 1,000 ETH holdings, have contributed to the selling pressure. Despite this, over 10 million coins have been accumulated in addresses over the last four weeks, accounting for 17.75% of all circulating ETH.
However, the market impact of these large addresses may be limited due to their low number or potential affiliation with exchanges.
Surprisingly, Ethereum exchange reserves have seen outflows, implying they may be staking addresses. In the last month, the number of ETH 2.0 deposits has increased, indicating growing interest.
Nonetheless, ETH demand has slowed significantly in the last ten days, indicating a lack of enthusiasm. Leverage increased slightly in the second week of May, possibly due to short selling. However, this trend has since reversed, coinciding with the bears’ loss of momentum.
The current price of ETH reflects a market stalemate, with a sideways trading pattern that has persisted around $1,825 for the past five days. Despite recent discounts, ETH bulls are struggling to recoup their losses, owing primarily to a lack of demand and confidence. Other leading cryptocurrencies share this sentiment.
While ETH has been subjected to selling pressure and a lack of enthusiasm from 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.
