Early investor Ether (ETH) sold his ETH holdings over the past week as the price surged to $2,000, sparking fears of further losses. However, onchain data tells a different story as investors speculate where ETH/USD may bottom.
Key takeaways:
- An early Ethereum whale sold $136 million of ETH, adding to pressure as Ethereum prices fell below the $2,000 level.
- Onchain data shows no evidence of senior ETH investors selling en masse.
- Analysts warn that the ETH price may drop further towards the $1,500 support.
Ethereum OG Whale sells $136 million worth of ETH
The aged Ethereum whale, an early investor who has held tokens since the network’s early years, sold 55,000 ETH worth about $112.25 million and 9,442 ETH worth about $24 million last week.
Related: Bearish ether is at risk of a $2 billion decline as tiny positions rise around $2k. dollars
The first Ether investor sold a total of $136 million at an average price of $2,041 per ETH, According to to the Lookonchain blockchain data tracker.
I am selling an aged ETH wallet. source: Lookonchain
This does not appear to be part of a broader trend, however, as analysis of Ethereum supply based on “HODL waves” shows that a significant portion of Ethereum supply remains unchanged across different time frames. In fact, the supply share of older cohorts of holders has generally increased over the past year.
Recently, the 3-6m cohort of investors saw a noticeable decline in supply, which dropped to 9% from 13.5% on May 19. The 1w-1m investor cohort also saw supply decline to 2.6% from 4.76% over the same period. This suggests that most deliveries changing hands are being made by tiny term holders.
Ethereum: HODL Waves. Source: Glassnode
In fact, supply in the 5-7 year investor group increased slightly to 9% from 8.59% on May 19.
Moreover, the chart below shows that supply last lively 5-7 years ago has only seen a slight raise in recent weeks and is well below the activity seen in 2022 when the ETH price dropped below $1,000.
ETH: Total supply last lively for 5 to 7 years. Source: Glassnode
Except for a few notable players announcing that they sold part or all your ETH holdings There hasn’t been a really broad trend lately to support the argument that Ethereum OGs are selling en masse.
Ether price drop to $1,500?
ETH/USD has been hovering around the psychological $2,000 level since Thursday as investors braced for further price declines.
At the time of writing, ETH is trading at $1,980, down 2% in the last 24 hours and 6.5% for the week.
“This doesn’t look good for Ethereum,” analyst Alex Marzell he said in Sunday’s post X adding:
“Momentum continues to favor the bears as $ETH approaches another key support area.”
ETH/USD daily chart. Source: X/Marzel
Marzell meant it key support around $1,800which analysts believe should be maintained to avoid a deeper correction.
Fellow analyst at Merlijn The Trader he said that ETH/USD price action “perfectly replicates the Wyckoff accumulation structure,” as shown in the three-day chart below.
The analyst explained that ETH is currently in a “consolidation phase, post-sale culmination” and is entering Phase C, where it will fall below $1,500.
ETH/USD 3-day chart. Source: Merlijn Handlarz
Another analysis by Echo Analysis shows that the bear flag breakdown predicted a drop in the ETH price towards the support at $1,500.
ETH/USD daily chart. Source: Echo Analysis
As Cointelegraph reportedgrowing supply on exchanges and falling demand for ETFs expose ETH to the risk of another drop towards the demand zone at $1,500-1,700.
