Ethereum is now trading below $4,000 for the first time in weeks; analysts have revealed that this might be an indication for a possible bearish run by the cryptocurrency before a bullish correction.
Ethereum addresses holding more than 1,000 ETH tokens have dropped to a four-year all-time low this week. Wealthy Ethereum owners are selling off their digital assets rapidly on the network; this might be another indication of a bearish run in the short term.
ETH Whales Are Dumping Their Ethereum
On-chain days analytics service provider, Glassnode has pointed out that the number of Ethereum addresses holding a substantial number of ETH tokens- at least 1,000 units- has reduced by over 900 units. The numbers dropped from a peak value of 7,239 in January to 6,292, an eight-month all-time low.
Blockchain analyst services work by critically observing ETH distribution among holding wallets to classify transactions and portfolios into retail and institutional classes.
Wallets holding more than 1,000 ETHs are coined as Whales due to the significant influence their every action has on the tokens short and medium-term price movement, either by selling or buying in bulk.
The number of Whales in a network house reflects the strength of the project. However, a significant and continuous decrease in the number of Whales indicates a selling trend amidst the wealthy crypto owners.
This scenario is reflected in Ethereum’s surprising dump by wealthy investors, as not only 1k ETH owners are dumping, more significant assets owners owning at least 10k ETHs are similarly dumping. The number of ETH owners that own at least 10,000 ETHs have reduced from 1,208 individuals to 1,156 individuals, an approximately 4.5% reduction in the number of mega whales.
Comparing the cryptocurrency’s growth in a year-to-date time period, there is a notable increase in the number of Whales this time last year compared to now, an increase from 1,065 individuals to 1,156 individuals. ETH’s price has increased by more than 450% since last year despite the recent downward pull its price is experiencing.
Small And Retail Investors Are Pulling Their Weight
Ironically, this year, the ETH price rally has been majorly influenced by retail investors rather than Whales.
Data shared by Glassnode analytics service reveals that the number of Ethereum addresses with ETH in their holding reached an all-time high on Monday. In the report, Over 71.23 million addresses now hold ETH in varying quantities across the globe.
The shared data revealed the growth of retail wallets through the year; wallets that hold ETH in the range of 0.01($40) ETH have increased by over 10 million from its year start value of 10.66 million. Meanwhile, wallets that own at least 0.1 ETH($400) have increased by over 3 million from its year value of 3.62 million.
In both cases, an almost two-fold increase in stats is noticed; this indicates a high relevance of the crypto token in the industry’s retail investors community. ETH currently trades at $3,914 according to Coinmarketcap price at press time.