- With the impact of a significant Bitcoin correction that has shaken the cryptocurrency market in the past few days, various coins experienced price fluctuations, and Ethereum also experienced notable effects.
- An important whale put up 10,600 ETH worth $17.2 million for sale at a price point of $1,622. This transaction resulted in a loss of $2.9 million for the whale.
- Ethereum’s market activity played a central role as the Exchange Flow Volume reached a one-month peak of 9,630.147 ETH. This increased flow to exchanges could be a reflection of market sensitivity.
Ethereum is not only facing selling pressure; the decrease in low transaction fee usage and activities has become a problem for ETH.
Evidence of Ethereum Whales Selling
With the impact of a significant Bitcoin correction that has shaken the cryptocurrency market in the past few days, various coins experienced price fluctuations, and Ethereum also experienced notable effects. Due to these factors, whales started selling significant portions of ETH.
According to Lookonchain, an important whale put up 10,600 ETH worth $17.2 million for sale at a price point of $1,622. This transaction resulted in a loss of $2.9 million for the whale. A more comprehensive analysis of transaction data painted a broader picture. The whale in question engaged in 18 different token trades, with only four of them being profitable. This equated to a relatively modest success rate of 22%.
The whale managed to make a profit of $10.8 million from Ethereum ownership, but the situation is not entirely positive. They also experienced a loss of $3.6 million in PDT transactions and an additional loss of $1.3 million in MPL transactions.
While whale interest in Ethereum decreases, retail participation tells a different story. According to data from Glassnode, the number of non-zero addresses reached an all-time high of 104,794,621. This indicates ongoing interest among individual users despite ongoing market volatility.
Ethereum’s market activity played a central role as the Exchange Flow Volume reached a one-month peak of 9,630.147 ETH. This increased flow to exchanges could be a reflection of market sensitivity and highlight potential selling pressures.
However, despite the increase in flows to exchanges, Ethereum’s network activity followed a different trajectory. The usage of low transaction fees indicates a decrease in overall network activity, especially in terms of smart contract interactions. In contrast, the NFT sector maintained relatively stable activity levels.
The Current State of Ethereum
Due to whale behavior and other factors, Ethereum’s price dropped from $1820 to $1627 in the past week, indicating a significant decline. Network growth has also slowed down, suggesting a potential decrease in new user participation. Additionally, Ethereum’s transaction speed has decreased, indicating less frequent transactions.
The MVRV ratio, a metric that determines profit or loss for current Ethereum holders, provided a mixed perspective for Ethereum. A negative MVRV ratio implies that a significant portion of Ethereum holders did not make a profit at the time of writing.
