According to data from the blockchain network analysis service Santiment, the top ten ETH addresses (so-called whales) now make up almost 20.58% of the total Ethereum supply.
Whale Hoard Ethereum After Price Crash in May
This concentration is unprecedented, what does that mean? Perhaps on the buy low sell high principle, after Ethereum fell nearly 60% from its peak in May, the whales started hoarding Ethereum.
In turn, these observations have caused ETH/USD to near its lows, according to key market participants. But even if fundamentals are strong, there is no guarantee of price hikes anytime soon.
The volume analysis showed negative signs.
On June 22nd, the price fell below the May low and hit the multi-day support. The decline slowed and activated a large number of stop-loss orders from buyers.
The rise in prices and the increase in trading volume on June 28 give hope for increased demand. However, the formation of the trendline recovery has slowed. There have been several candlesticks with long upper shadows, indicating that prices are near the 2400 level.
July 8th is a very important candlestick as it has the highest volume and is trending down when compared to other July candlesticks. The candlestick on July 12 shows that sales continue to dominate, albeit less eloquently.
Hence, we can see that there is an indicator of sales above the long-term support line. The inability of the market to recover from the support line increases the chance of a breakout. When this happens, the whale can accumulate more Ethereum at a better price.
This outlook represents the opinions of Fxcryptonews only and should not be considered as a piece of financial advice,