- Current on-chain data reveals that the number of addresses holding 0.01 ETH or more reached a new ATH on July 10th.
- Addresses holding at least 1,000 ETH are reducing their balances, contributing to selling pressure from whales.
- The Money Flow Index (MFI) also confirms some accumulation. In short, retail demand is in conflict with whales at the moment.
According to current data, addresses holding 0.01 ETH or more set a new record; Can ETH demand beat the selling pressure from whales?
Demand in Ethereum Has Been Observed To Increase Rapidly
According to the latest data, addresses holding 0.01 ETH or more have set a new record, indicating that demand for ETH remains healthy and new addresses confirm the increasing demand.
While the above is true, address activity and the dynamics of demand can determine whether this is enough for a major move. For example, a large number of retail activities can increase the address count. However, the absence of whales is not a strong observation.
Addresses holding at least 1,000 ETH are reducing their balances, contributing to selling pressure from whales.
Whales are hindering the potential of ETH
The above data suggests that retail buyers are contributing to liquidity for whales. Consequently, this limited the potential rally for ETH. We have seen an increase in demand in the past 24 hours, but it is likely due to the significant price level.
ETH recently retested a significant Fibonacci support level at $1843. It has been trading above this level for a while, possibly due to substantial accumulation in this region. However, the ongoing selling pressure from whales may limit the impact of increased demand.
Looking at the ETH chart, the cryptocurrency is also attempting to bounce from the 50% Relative Strength Index (RSI) level. The Money Flow Index (MFI) also confirms some accumulation. In short, retail demand is in conflict with whales at the moment.
Glassnode data on ETH flows reveals that the number of buyer addresses has reached its lowest level in 5 months.
This observation strengthens the idea that the current level of buying pressure is low. If ETH continues to be dominated by the selling pressure from whales mentioned above, it could surrender to the bears. However, as with any tug-of-war, if market dynamics change in their favor, ETH bulls can regain control.
