The cryptocurrency industry has been on the road to recovery following the significant losses experienced in August. Nevertheless, it’s worth noting that historically, September has earned a reputation as a challenging month for the crypto market. Consequently, the prevailing sentiment may continue in the coming weeks. Against this backdrop, Ethereum [ETH] investors have faced hardships.
Recent data from IntoTheBlock revealed that a substantial 44.2% of Ethereum’s holders find themselves in a losing position. ETH holders holding at a loss surged from about 27% in early July to their current number. Furthermore, the number of addresses experiencing losses has reached an eight-month peak, totaling 47,304,857.667 addresses.
At press time, ETH is being traded at $1,629, marking a modest 0.5% increase in daily value. Nevertheless, the leading altcoin has experienced an 11.3% decline in the past month. ETH previously exhibited a strong surge, reaching a peak above $1,800, raising optimism for a potential climb to the $2,000 mark. However, this upward momentum was abruptly halted as the asset retreated to a low point of $1,597.
However, despite this decline, significant Ethereum holders, often referred to as “whales,” have seized the opportunity. Recent data suggests that ETH whales have acquired an impressive 260,000 ETH in the past 24 hours, amounting to nearly $425 million in value. The accumulation of ETH by these whales is typically interpreted as a positive sign. Given their substantial holdings in the Ethereum supply, their actions could potentially fuel or aid a market rally.
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Where is Ethereum’s selling pressure coming from?
Recent data from Glassnode has suggested that there is an uptick in the number of Ethereum deposits being made to exchanges. The number of exchange deposits hit a monthly high of 2,145.685.
This rise in deposits to exchanges may suggest that Ethereum is being transferred from private wallets to trading platforms. Typically, this kind of movement is interpreted as a signal of increased selling activity or an indication that investors are preparing for potential sales.
Based on the Relative Strength Index [RSI] indicator, Ethereum has consistently remained below the 50 median threshold during the entire month of August. This pattern has persisted as we enter September. At present, the RSI reading stands at the 35 median mark, signaling a prevailing sentiment among sellers in the market. It is important to keep track of Ethereum over the next few weeks.
Also Read: Ethereum Registers More Long-term Holders Than Bitcoin in 2023