One early investor in Ether (ETH) sold his ETH holdings over the past week as the price approached $2,000, raising fears of further losses. However, on-chain data tells a different story as traders speculate where ETH/USD could bottom.
Key takeaways:
- One of the first Ethereum whales sold $136 million worth of ETH, adding pressure as Ether trades below the $2,000 level.
- Onchain data shows no evidence that older ETH investors are selling en masse.
- Analysts warn that ETH price could fall further towards the $1,500 support.
Ethereum whale OG sells ETH for $136 million
An old Ethereum whale, one of the earliest investors to own tokens from the early years of the network, sold 55,000 ETH worth about $112.25 million and 9,442 ETH worth about $24 million over the past week.
Related: Ether bears risk a $2 billion squeeze as short positions build up around $2,000
The first Ether investor dumped a combined $136 million at an average price of $2,041 per ETH. according to blockchain data tracker Lookonchain.
Selling for an old ETH wallet. Source: Lookonchain
However, this does not appear to be part of a broader trend, as an analysis of Ethereum supply, based on “HODL waves”, reveals that a significant portion of Ethereum supply remains unchanged over various time periods. In fact, the proportion of supply held by older cohorts of holders has generally increased over the past year.
More recently, the 3-6 million investor cohort saw a notable reduction in supply, falling to 9% from 13.5% on May 19. The 1-1 million cohort of holders also saw their bid holdings fall to 2.6% from 4.76% over the same period. This suggests that most of the supply changing hands is being held by short-term holders.
Ethereum: HODL waves. Source: Glassnode
In fact, the supply in the hands of the 5-7 year old investor group has increased slightly to 9% from 8.59% on May 19.
Additionally, the chart below shows that supply last active 5-7 years ago has only seen a modest increase in recent weeks and is well below the activity seen in 2022, when the ETH price bottomed below $1,000.
ETH: Total active supply for the last 5 years to 7 years. Source: Glassnode
Except for several important players. announcing who have sold a part or all your ETH holdings Recently, there is no real general trend to support the argument that Ethereum OGs are selling off en masse.
Ether price falls to $1,500?
Since Thursday, ETH/USD has been oscillating around the psychological $2,000 level as traders prepared for further price declines.
At the time of writing, ETH is trading at $1,980, down 2% over the past 24 hours and down 6.5% over the week.
“This is not looking good for Ethereum,” analyst Alex Marzell saying in an X post on Sunday adding:
“Momentum continues to favor bears as $ETH approaches the next key support area.”
ETH/USD daily chart. Source: X/Marcell
Marzell was referring to crucial support around $1,800which according to analysts must be maintained to avoid a deeper correction.
Fellow Analyst Merlijn The Trader saying that ETH/USD price action is “mapping perfectly into a Wyckoff accumulation structure,” as shown in the three-day chart below.
The analyst explained that ETH is currently in a “Phase B consolidation, post-sale climax” and was entering Phase C, where it would bottom below $1,500.
ETH/USD three-day chart. Source: Merlin the merchant
Another analysis from Echo Analysis said that a breakout of the bearish flag projected a drop in ETH price towards the $1,500 support.
ETH/USD daily chart. Source: Echo Analysis
Like Cointelegraph reportedIncreasing supply on exchanges and declining demand for ETFs put ETH at risk of another leg into the $1,500-$1,700 demand zone.
