Yet again, Ethereum (ETH) is failing to keep up with the momentum following a strong rebound last week. At the moment, Ethereum’s price is changing hands at $1030, 9% lower, with a market valuation of $125 billion.
The second-largest cryptocurrency is certainly exhibiting indications of instability, and if it refuses to maintain the $1,000 level, it might fall back towards $700 or worse.
Ali Martinez, a research analyst, provides a few critical on-chain statistics to keep an eye on.
Using Glassnode statistics, Martinez stated that lately, there had been a significant increase in the availability of ETH exchange on the crypto exchanges. He claims that there has been a transfer of more than 200,000 $ETH to an unknown crypto exchange in just 5 days, worth $200 million.
Additionally, there has been a significant increase in the amount of ETH addresses that have lost money due to the current correction- this might lead to yet another sell-off.
To prove this point, Ali Martinez claims that there is a risk of a massive downfall ahead for Ethereum. He quotes that when looking at the transaction history, almost 468,000 addresses holding over 7 million ETH are drowning and may soon begin to abandon their holdings. Hence, as per his prediction, a surge in selling pressure might force a drop to $700 or even $600.
What Are the ETH Whales Up to?
Given the growing volatility in the ETH value, whales have maintained their dominance through repeated accumulations. As per Santiment data, the shark and whales of Ethereum have together accumulated 1.1% more than Ethereum’s supply during the recent 39% drop.
The overall market circumstances appear to be poor, and global macroeconomic issues are contributing to this extensively. Moreover, according to the latest information, traders’ trust in the market has declined significantly, which might create additional selling pressure on US stocks.