On-chain data is Ethereum Holders are accumulating more coins using last month’s revision, but retail demand for ETH does not appear to be slowing.
It is a well-known fact that large holders (also known as whales) tend to have the greatest impact on asset pricing behavior. Traditional finance makes it impossible to transparently monitor how these large holders behave. Are they actively buying and selling? When do they do it? Extracting and monitoring this data is seamless for crypto assets, as all data is recorded on the chain and only processed.
After a major market move, it’s an important moment to see how these entities work and how they are positioned for the future. After the recent plunge in the crypto market, we are investigating what their whales are doing. In this case, especially in the case of ETH, the group of investors who hold 10k to 100k of ETH in their wallet is the investor who manages most of ETH with almost a quarter of the total supply of ETH. .. As you can see in the graph below, this group of investors has had a significant impact on asset pricing behavior and ETH’s balance sheet continues to grow. They have accumulated considerably, with total balances increasing from 28.3 million ETH in March to 29 million ETH today, which is about 700,000 ETH, which is equivalent to $ 1.38 billion.
Balance by Holdings Index as of May 24 by IntoTheBlock
The differences in the indicators are very clear, indicating that this large number of investors may be trying to accumulate at these prices as they expect ETH to rise in the future. Do they treat this market downturn as an opportunity to buy at a discounted price and continue to accumulate?
In addition to what big whales are doing, the success of the Ethereum blockchain also depends on small investors deciding to use it in the myriad of applications available today, from decentralized finance to NFTs. increase. A useful indicator of whether this interest is rising or falling is to measure how many addresses are in the right balance of ETH on behalf of the retail sector. The range of 1-10 ETH is the best group to measure this. This is usually a reasonable balance that allows users to interact with the dApp and pay gas costs more comfortably. As shown in the graph below, in addition to the market downturn, the number of addresses with ETH in this range continues to grow significantly, going from 1.14 million to 1.19 million in just a month and a half. increase.
According to IntoTheBlock, the address according to the Holding indicator as of May 24th.
On-chain data will be a powerful tool for discovering potential support and resistance levels that may serve as the pivot point for ETH price action. These levels can be extracted by grouping by price range, taking into account the average cost of ETH per address. These price ranges, which indicate more wallets, may refer to price levels where many investors may change from a profitable situation to a less profitable situation, and therefore buy and sell ETH. By influencing price behavior, you are more likely to take action. This calculation is displayed in / out of the following indicator, MoneyAroundPrice indicator.
According to IntoTheBlock, price indicator in / out as of May 24th.
As always, we take into account that each wallet can be close to one investor, but assume that there are only a few cases where an entity may control multiple addresses. I am.As you can see in chartThere are most of the addresses purchased at the price level of $ 1970 to $ 2087 (+2 million addresses), so if that price resistance is broken, the price will expand to the new highs if the conditions are positive. There is a possibility.