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The price of the largest altcoin Ethereum (ETH) is trading at $1,650, but data on network activity signals some interesting developments. Current data shows that 35% of circulating ETH is controlled by the top 10 wallet addresses, indicating a significant trend.
Big Investors Accumulating ETH
While small investors are trying to offload their ETH after the recent price crash, big investors are busy accumulating. This has resulted in the concentration of ETH supply in a specific wallet address, with the top 10 wallet addresses currently controlling 35% of the total supply. While this can be seen as Ethereum centralizing, it’s not entirely the case.
Data platform Santiment notes, “The top 10 wallet addresses on the Ethereum network currently control over 35% of the total supply. This does not indicate a sudden centralization for the second largest cryptocurrency in the crypto market, but rather highlights how smaller investors succumbed to fear, uncertainty, and doubt (FUD) during the market downturn.”
Amidst the recent negative price movements, there has been a significant increase in whale transactions on the Ethereum network. Wallet addresses holding between 10 and 10,000 ETH have acquired an average of over 1,788 ETH since the beginning of June. Santiment states, “There has been a notable increase in wallet address activity on the network amidst Ethereum dropping below $1,650 and highly volatile price movements. The number of wallet addresses holding between 10 and 10,000 ETH has risen to 355,000, and there has been an increase in transactions of $100,000 and above.”
Expected Price Movement for Ethereum
Following the recent market-wide downturn, Ethereum has managed to hold above the $1,650 level. Currently, ETH is trading below both $1,680 and the 100-hour Simple Moving Average. Additionally, an important descending trendline is forming around $1,665 on the ETH/USD hourly chart.
Failure to break above the $1,665 resistance line could result in a new decline. The first support to watch on the downside is around $1,580. A break below $1,580 would indicate further losses.
The next significant support level below $1,580 is near $1,550. Additional losses could potentially lead to the price approaching $1,520 and even falling below a new low of $1,500.
