- Ethereum’s supply held by top addresses spiked substantially over the last 30 days.
- Market indicators were bullish, but a few metrics suggested otherwise.
Like most cryptos, Ethereum’s [ETH] price action also went sideways for quite a few weeks recently. As per CoinMarketCap, ETH’s price declined by over 1% in the last 24 hours.
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At the time of writing, it was trading at $1,825.01 with a market capitalization of more than $219 billion. The recent price action did not seem to have pleased the whales, as Glassnode’s data suggested that the big players were selling their assets.
Are whales on a selling spree?
As per Glassnode’s tweet posted on 23 May 2023, the number of addresses with more than 10,000 ETH reached a six-month low of 1,156. This looked concerning, as it hinted that the token was under selling pressure.
📉 #Ethereum $ETH Number of Addresses Holding 10k+ Coins just reached a 6-month low of 1,156
View metric:https://t.co/paW9ojeWBw pic.twitter.com/9H31tXZPyH
— glassnode alerts (@glassnodealerts) May 23, 2023
Here is the twist…
However, that was not the exact case, as other datasets suggested otherwise. For instance, the number of non-zero addresses reached an ATH of 99,597,841.
📈 #Ethereum $ETH Number of Non-Zero Addresses just reached an ATH of 99,597,841
View metric:https://t.co/beS1MtIgAZ pic.twitter.com/qJ0PFVnvEe
— glassnode alerts (@glassnodealerts) May 23, 2023
In addition to that, Santiment’s data actually revealed that investors were not selling but rather accumulating ETH. The supply held by top addresses increased considerably in the last 30 days.
Moreover, Ethereum supply on exchanges registered a sharp decline, while supply outside of exchanges increased. This further proved that investors were actually accumulating the token.
Source: Santiment
Does Ethereum accumulation mean a price uptick?
As high accumulation suggests investors’ confidence in ETH, a price hike in the short term could be possible. ETH’s MACD displayed a bullish crossover.
The Money Flow Index (MFI) shot up considerably, further increasing the chances of a northbound price movement in the coming days.
However, the Relative Strength Index (RSI) remained in the bears’ favor as it registered a downtick and was heeded below the neutral mark of 50.
Source: TradingView
This is what metrics have to say
Though a few market indicators suggested a price uptrend, the metrics told a different story. As per CryptoQuant, Ethereum’s exchange reserve was increasing. A rise in exchange reserves means that the token is under selling pressure.
Read Ethereum’s [ETH] Price Prediction 2023-24
Its taker buy/sell ratio was red, suggesting that selling pressure was dominant in the market. However, things in the derivatives market looked bullish.
According to Coinglass, ETH’s open interest has declined over the past few weeks, suggesting that the prevailing price trend might come to an end soon.
Source: Coinglass
