Despite a return on investment (ROI) of 8,700%, ETH makes many people unhappy. Compared to the ATH of $4,878 hit 3 months ago, the price is now almost 51% lower.

Most are profitable

And yet, IntoTheBlock data appears to show that 67% of ETH holders are profitable. This essentially means that the token is profitable for investors at the recent lows.

2% of holders are balanced, meaning there are no gains or losses. The remaining holders are losing money as the current price is below their average cost of acquisition.

Source: Intotheblock

Given the large concentration of keepers, whales represent more than 1% of the total circulating supply at 42%.

A recently released on-chain analysis platform Santiment also shows that the amount of ETH held by leading non-exchange whales is increasing. In fact, the number of addresses is currently at an all-time high of 26.22 million ETH.

Top 10 Whale Addresses Without Exchange (Purple) | The source: mood

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It is worth noting here that the ETH whale just bought 500 million SHIB. According to WhaleStats, nearly 7000 ETH moved into the top 1000 whale wallets and about 29,000 ETH pulled out of these whale wallets in the last 24 hours. This means large holders are diversifying their ETH holdings into other altcoins.

Amount transferred to/from wallets | The source: whale statistics

What is causing the price drop?

According to Chinese journalist Coin Wu Messages, Cobo Wallet co-founder Shenyu, noted if ETH falls further to $1,900, $600 million on MakerDAO will be liquidated. A further decline towards $1,400 would take the liquidation to $1.7 billion.

One of the reasons for the pressure on ETH is NFT issuers. Thousands of ETH have been moved to exchanges from many NFT marketplaces like OpenSea, increasing inflow to exchanges.

OpenSea and NFT issuers could be one of the pressure factors for ETH to crash. In the last two weeks, the amount of ETH transferred directly from OpenSea Wallet to Coinbase reached 21,000, and the amount of ETH transferred to license distributors reached 35,300. Source: @jx_block pic.twitter.com/WxuDwk3xic

— Wu Blockchain (@WuBlockchain) January 24, 2022

“OpenSea and NFT issuers could be one of the sources of pressure for ETH to crash. In the last 2 weeks, the amount of ETH transferred directly from the OpenSea wallet to Coinbase reached 21,000 and the amount of ETH transferred to the copyright distributors reached 35,300.

But that’s not all.

The volume of net transfers to/from all exchanges was almost -59k on Jan 24th. This is an indication that more ETH is coming out of the exchange than in.

Net transfer volume to/from exchanges | The source: Glass node

On the other hand, if we look at the week ending January 21, according to Coinshares, the digital asset fund cash flow remains negative for ETH in week 6. Therefore, there is no sign of a positive return for the largest altcoin to date in this regard, as the total outflow last week was $16 million.

One batch Bigger shocks coming?

ETH’s price seems to be reacting to a variety of factors right now, but the market should prepare for regulatory changes that could come into effect this year. Recently, Hayden Adams, founder of the largest decentralized exchange protocol on Ethereum, Uniswap, said JP Morgan Chase has closed its bank account “without notice”.

In response, former CFTC Commissioner Brian Quintenz to say:

“It is likely that banking regulators like the Federal Reserve and the Office of the Comptroller of the Currency (OCC) will withdraw crypto in the dark, with direction from above.”

As a result, the crypto market is likely to see major changes, especially as President Biden’s executive order is reported to go into effect next month.

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