Data shows that as the price fell below $4,000, the Ethereum Whale sold ETH

It is difficult for Ethereum to align its wealthiest investors with its native token Ether (Ethereum) Implies that more losses will be recorded in the near future.

Blockchain data analysis service Glassnode disclose The number of ether addresses holding at least 1,000 ETH dropped to 6,292 this Monday, which is the lowest reading since April 2017. Among the peaks so far this year, the figure for January was 7,239.

On-chain analysts usually observe Ether distribution between addresses Realize retail and institutional emotions. They consider wallets holding more than 1,000 ETH (approximately USD 3.92 million at currency exchange rates) as “whale“Mainly because they have the ability to influence the mid-term market trend through a large number of sell/buy orders.

But as the number of these so-called whales declines, it reflects the continued sales trend among the wealthiest Ethereum wallet owners.For example, quantity Ether address holding at least 10,000 ETH (Or approximately US$39.2 million) also fell from 1,208 in June to 1,156 at the time of writing, a drop of nearly 4.5%.

However, in the year-to-date time frame, this number has increased from 1,065 to 1,156, and at the same time, the cost of buying one ether has risen by nearly 450% in the same period.

Small investors are accumulating

Unlike whales, wallets holding a small amount of Ethereum tokens have always been at the forefront Ethereum’s price increase in 2021.

For example, data from Glassnode shows that the number of Ether addresses with non-zero ETH balances reached a record high of more than 71.23 million on Monday. This includes wallets with at least 0.01 ETH (approximately $40), the number of which has soared from 10.66 million at the beginning of this year to 20.31 million.

At the same time, addresses holding at least 0.1 ETH (approximately US$400) jumped from 3.62 million on January 1, 2021 to 6.44 million this Monday.This is almost a two-fold increase, indicating Higher retail interest In the world’s second largest cryptocurrency.

ETH bullish reversal

The latest decline performance of the Ethereum Whale is Ethereum strives to close decisively above $4,000, Its psychological resistance level.

On Tuesday, ETH/USD fell more than 3.27% to an intraday low of $3,880. Its decline was part of a broader correction that began after Ethereum tested a downward sloping trend line as resistance on December 23.

The image below shows that the trend line is part of the descending channel and looks like a “declining wedge”.

detailed, Drop wedge A technically bullish reversal pattern appears after the price trend goes down within a trading range with two convergent trend lines. The instrument of interest eventually breaks through the upper trend line of the structure before or after reaching the apex (where the two trend lines meet).

The profit target in the rising wedge scenario is generally obtained after adding the maximum distance between the upper and lower trend lines of the structure to the breakthrough point.This puts the ETH price on the road To the range of 4,200-5,000 USD, Depends on its breakthrough level.

Despite this, the price of Ether still has enough room to fall, and in the worst case it will fall to $3,200. This level is the confluence point of the Wedge trend line.

related: 3 reasons why the price of Ethereum may fall below $3,000 by the end of 2021

At the same time, independent market analyst Pentoshi Say It is impossible to predict the specific situation of Ethereum, because it is still stuck between the “bear market contention” and “bull market contention” areas, as shown in the figure below.

“Maybe this is the bottom. Don’t care,” Pentoshi tweeted on Tuesday.

“I don’t like their market buying so many times in an area with an important historical background like this. I would rather pay for confirmation.”

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