Ethereum’s whales maintain unwavering commitment, consistently adding to their holdings during price drops
In a surprising twist, Ethereum (ETH), the global crypto leader, faced formidable selling pressure at $1,750. Currently, ETH is down 1.73% to $1,560, with a $187 billion market cap. Despite this bearish episode, on-chain data highlights Ethereum’s whale addresses amassing an incredible 40 million ETH, reinforcing their faith in its long-term prospects.
Santiment, a reputable on-chain data provider, disclosed that the wealthiest Ethereum whales on and off exchanges augment their holdings, even as the overall market value hovers slightly above $1,570. Approximately 8.51% of Ethereum ($ETH) resides on exchange platforms. Simultaneously, the top 10 non-exchange addresses collectively boast an impressive 39.22 million $ETH.
Despite its prominence, ETH is conceding ground to Bitcoin amid this market decline. Ether’s portion of the total market capitalization in the trillion-dollar crypto market has decreased from approximately 18.4% at the beginning of the year to 17.8%. Meanwhile, Bitcoin’s dominance has risen above the 50% mark.
Ethereum Faces Challenge Amidst Bearish Signals
At the beginning of the week, the Ethereum Foundation converted approximately $2.7 million worth of Ether into the stablecoin USDC through a sale. Crypto analyst Ali Martinez warned of a possible significant sell-off if ETH drops below the $1,530 threshold. This added selling pressure has added to the hurdles faced by the world’s second-largest cryptocurrency.
ETH hovers slightly above the crucial $1,550 support level at the latest data point. However, the Relative Strength Index (RSI) and Awesome Oscillator (AO) have dipped below 50 and 0, respectively, indicating a growing bearish sentiment. In the future, investors should prepare for the potential of ETH testing the next support below $1,400.
Despite the prevailing bearish signals, a surge in external factors, like impactful news or macro events, has the potential to alter the course swiftly. In this scenario, if Ethereum successfully turns the $1,727 resistance into a solid support level, it could disrupt the bearish narrative, potentially driving ETH towards retesting the $2,030 barrier.
The previous week held significant importance for Ethereum enthusiasts as the United States introduced six ETFs based on futures. Nevertheless, these innovative ETFs attracted just under $10 million during their first week, indicating a somewhat tepid response from investors.