- Large-scale investor activities have introduced increased volatility and selling pressure, contributing to Ethereum’s market downturn.
- Ethereum’s active and new address counts have significantly declined, indicating a drop in investor interest.
Ethereum’s price has decreased by nearly 10% over the past week, with an additional 1% decline in the past day, bringing its 24-hour low to $2,868.
This downturn contrasts with Bitcoin, which has achieved several price gains despite similar market conditions.
The decline in Ethereum’s value can be attributed to trading activities by large-scale investors, known as “whales,” which have increased market volatility and selling pressure. Moreover, key metrics indicate a decrease in investor engagement with Ethereum.
Glassnode’s data reveals that the total of active Ethereum addresses has fallen from a high of 564,868 in late April to 468,548 as of now. Additionally, the creation of new Ethereum addresses has declined significantly, dropping from 196,629 at the beginning of the month to under 85,000 as of May 11. These statistics suggest a decrease in investor engagement with Ethereum recently.
Technical analyses show that Ethereum has broken through important support levels on the daily chart, suggesting continued downward pressure. On the 4-hour chart, liquidity near the $3,200 level needs to be absorbed before any further decline can occur.
This condition suggests that Ethereum might temporarily rise above $3,000 before possibly declining to around $2,800, potentially setting up a future rally.
Additionally, there have been movements in the Bitcoin market, where two wallets that had been inactive for nearly 11 years, each holding 500 BTC, were activated and liquidated their holdings, contributing to the current market dynamics.
These market changes are for investors and Ethereum holders to consider, providing insight into immediate market responses and longer-term trends that may affect Ethereum’s pricing and market stability. Understanding these factors is essential for investment decisions in the cryptocurrency market.
