By Nathan Ferguson
The past few months were challenging for Ethereum enthusiasts to avoid panicking as the leading altcoin saw continued selling without a visible end. However, bears have eased their assault often, opening the gates for brief relief surges. Nevertheless, the upside attempts remained short-lived, and ETH bears maintained their strength.
Similar cases play out at the moment after Ethereum’s recent slump. The marketplace has seen some days of somewhat calmness and slight uptrends. Therefore, market players can expect another crash from ETH soon if markets keep the same trajectories. Understanding the reasons behind the selling momentum is crucial to predicting upcoming reactions.
Meanwhile, ETFs (exchange-traded funds) with massive ETH amounts have been trimming their holdings. Ether Fund and 3i0 CoinShares Ether ETF are among the leading exchange-traded funds invested massively in Ethereum. However, the Glassnode metrics show the holders offloaded substantial Ether amounts in June.
CoinShares ETF offloaded approximately 82,886 BTC between June 1 and June 20. The Ether Fund exchange-traded fund traded about 87,385 ETH between May 31 and June 20. Though the ETFs sold massive Ethereum amounts, their current holdings have more than the amount sold.
What Next
Analysts presume these holders will keep selling in the upcoming months due to the balance left on their accounts. Nevertheless, the discounted prices have attracted massive accumulation and a steady increase in users. Ethereum addresses holding over 100 Ether have been on a stable uptick within the past 12 months.
There were around 42K addresses with more than 100 Ether early in July last year. The figure has climbed to 44,343 addresses as of July 23, 2022. The surge in Ethereum addresses & balances in wallets since mid-June authorizes the massive accumulation around the $1,000 mark. Ethereum’s 30-day MVRV ration affirms that some wallets that purchased ETH near the recent lows already enjoy profits.
The MVRV ratio matches Ethereum’s recent recovery. It supports an enormous buy wall of around $1,000. Nevertheless, uncertainty dominated the market as ETFs boasts massive powers as they can sell more asset.