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Market

Busy whales are dropping Ethereum as the price drops below $ 4,000

December 29, 2021 - Around 4 mins mins to read

Ethereum is having a hard time keeping wealthy investors as technical factors point to a possible short-term downside.

Blockchain data analytics service Glassnode announced that the number of Ethereum addresses with at least 1,000 ETH dropped to 6,292 on Monday (December 27), the lowest level since April 2017. This vault recorded the all-time high (ATH) of 7,239 Addresses in January.

Whales continue to give up Ethereum as the price drops below $ 4,000

Number of Ethereum addresses with at least 1,000 ETH | Source: Glassnode

On-chain analysts often watch the amount of ETH that is distributed among the addresses to confirm the sentiment of retail and institutional investors. They consider wallet addresses greater than 1,000 ETH (currently about $ 3.82 million) to be “whales,” largely due to their ability to short-cut temporary market trends or buy large.

But as whale numbers decline, it reflects an ongoing sales trend among the rich. For example, the number of Ethereum addresses with at least 10,000 ETH (around 38.2 million US dollars) has also fallen from 1,208 in June to currently 1,156, which corresponds to a decrease of almost 4.5%.

Whales continue to give up Ethereum as the price drops below $ 4,000

Number of Ethereum addresses with at least 10,000 ETH | Source: Glassnode

Since the beginning of the year (YTD), however, the number of elephants with at least 10,000 ETH has increased parallel to the price from 1,065 to 1,156 addresses, which corresponds to an increase of almost 450%.

Elsewhere, WhaleAlert reports that almost $ 262 million in ETH tokens has been transferred to Binance in the last few hours after the price drop.

The three large transactions transferred nearly 65,986 ETH, the first of which was 27,205 ETH or $ 109,887,570, the second was 26,665 ETH valued at $ 104,396,148, and on Tuesday 12,116 ETH was valued at $ 47,675,435.

Small investors are piling up

In contrast to whales, wallet addresses holding ETH in small amounts were at the forefront of the 2021 bull run.

Glassnode data shows the non-zero number of ETH addresses hit an ATH of more than 71.23 million on Monday. Wallet addresses with at least 0.01 ETH (approx. 38 USD) rose from 10.66 million to 20.31 million YTD and addresses with at least 0.1 ETH (approx. 382) from 3.62 million to 6.44 Millions of YTD, which signals growing interest from retailers.

Whales continue to give up Ethereum as the price drops below $ 4,000

Number of Ethereum addresses with at least 0.1 ETH | Source: Glassnode

ETH reverses upward trend

The number of Ethereum whale addresses fell when ETH price struggled to close above $ 4,000, a major level of psychological resistance.

On Tuesday (December 28), ETH / USD fell more than 3.27% to an intraday low of $ 3,880. This is part of a wider correction after ETH tested the downward sloping trendline as resistance in December.

The graph below shows that the trendline is part of a descending channel and appears like a “falling wedge”.

Whales continue to give up Ethereum as the price drops below $ 4,000

The daily ETH / USD frame price chart shows a falling wedge pattern | Source: TradingView

In particular, a falling wedge is a technical bullish reversal pattern that occurs after the price trend is lower in a trading range where two trend lines converge. The asset will eventually break the structure’s top trendline before or after it hits the top (where the two trendlines intersect).

The profit target in this scenario can be determined by adding the maximum distance between the top and bottom trend lines of the structure to the breakout point. That puts the ETH price in the $ 4,200-5,000 range, depending on its breakout level.

Whales continue to give up Ethereum as the price drops below $ 4,000

ETH / USD daily frame price chart with falling wedge targets | Source: TradingView

However, in the worst case scenario, where the trendlines of the wedge cross, ETH price could still fall further towards USD 3,200.

The independent market analyst Pentoshi to say A concrete forecast for ETH is not yet possible as it is still caught between bulls and bears, as the graphic below shows.

Whales continue to give up Ethereum as the price drops below $ 4,000

Three-day frame ETH / USD price chart | Source: TradingView

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Market

Busy whales are dropping Ethereum as the price drops below $ 4,000

Ethereum is having a hard time keeping wealthy investors as technical factors point to a possible short-term downside.

Blockchain data analytics service Glassnode announced that the number of Ethereum addresses with at least 1,000 ETH dropped to 6,292 on Monday (December 27), the lowest level since April 2017. This vault recorded the all-time high (ATH) of 7,239 Addresses in January.

Whales continue to give up Ethereum as the price drops below $ 4,000

Number of Ethereum addresses with at least 1,000 ETH | Source: Glassnode

On-chain analysts often watch the amount of ETH that is distributed among the addresses to confirm the sentiment of retail and institutional investors. They consider wallet addresses greater than 1,000 ETH (currently about $ 3.82 million) to be “whales,” largely due to their ability to short-cut temporary market trends or buy large.

But as whale numbers decline, it reflects an ongoing sales trend among the rich. For example, the number of Ethereum addresses with at least 10,000 ETH (around 38.2 million US dollars) has also fallen from 1,208 in June to currently 1,156, which corresponds to a decrease of almost 4.5%.

Whales continue to give up Ethereum as the price drops below $ 4,000

Number of Ethereum addresses with at least 10,000 ETH | Source: Glassnode

Since the beginning of the year (YTD), however, the number of elephants with at least 10,000 ETH has increased parallel to the price from 1,065 to 1,156 addresses, which corresponds to an increase of almost 450%.

Elsewhere, WhaleAlert reports that almost $ 262 million in ETH tokens has been transferred to Binance in the last few hours after the price drop.

The three large transactions transferred nearly 65,986 ETH, the first of which was 27,205 ETH or $ 109,887,570, the second was 26,665 ETH valued at $ 104,396,148, and on Tuesday 12,116 ETH was valued at $ 47,675,435.

Small investors are piling up

In contrast to whales, wallet addresses holding ETH in small amounts were at the forefront of the 2021 bull run.

Glassnode data shows the non-zero number of ETH addresses hit an ATH of more than 71.23 million on Monday. Wallet addresses with at least 0.01 ETH (approx. 38 USD) rose from 10.66 million to 20.31 million YTD and addresses with at least 0.1 ETH (approx. 382) from 3.62 million to 6.44 Millions of YTD, which signals growing interest from retailers.

Whales continue to give up Ethereum as the price drops below $ 4,000

Number of Ethereum addresses with at least 0.1 ETH | Source: Glassnode

ETH reverses upward trend

The number of Ethereum whale addresses fell when ETH price struggled to close above $ 4,000, a major level of psychological resistance.

On Tuesday (December 28), ETH / USD fell more than 3.27% to an intraday low of $ 3,880. This is part of a wider correction after ETH tested the downward sloping trendline as resistance in December.

The graph below shows that the trendline is part of a descending channel and appears like a “falling wedge”.

Whales continue to give up Ethereum as the price drops below $ 4,000

The daily ETH / USD frame price chart shows a falling wedge pattern | Source: TradingView

In particular, a falling wedge is a technical bullish reversal pattern that occurs after the price trend is lower in a trading range where two trend lines converge. The asset will eventually break the structure’s top trendline before or after it hits the top (where the two trendlines intersect).

The profit target in this scenario can be determined by adding the maximum distance between the top and bottom trend lines of the structure to the breakout point. That puts the ETH price in the $ 4,200-5,000 range, depending on its breakout level.

Whales continue to give up Ethereum as the price drops below $ 4,000

ETH / USD daily frame price chart with falling wedge targets | Source: TradingView

However, in the worst case scenario, where the trendlines of the wedge cross, ETH price could still fall further towards USD 3,200.

The independent market analyst Pentoshi to say A concrete forecast for ETH is not yet possible as it is still caught between bulls and bears, as the graphic below shows.

Whales continue to give up Ethereum as the price drops below $ 4,000

Three-day frame ETH / USD price chart | Source: TradingView

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