The price action for Ethereum right now doesn’t look as great. The leader of the Defi market is struggling to stay afloat at the $2000 level and continue an uptrend. This phase comes after a great rally to ATH 4356 in May. Is this a correction that will eventually propel to a new ATH or an entry to the bear market is now being determined.
The most talked-about scenario right now is the supply shock that’s being created for Ethereum. Although, how well it could translate for ETH price is to be watched out for.
Top 10 Whales hold 20% of the total supply
Crypto Analytics firm Santiment’s data shows that the ether whale addresses have accumulated 2.12% of the circulating supply of ETH in the last 41 days.
If the top ten wallets were divided equally, each address would be worth around two million ETH tokens.
The data shows that when Ethereum achieved its all-time high in May, the whales sold off their holdings. Now the whales have started their accumulation again. As the price has crashed, it’s probably the best time to buy the dip.
The wallets have accumulated 2% of the total supply, that is 20 Million Ethereum Tokens.
Miners balances on a surge
Another set of data from the analytics firm Santiment shows that Miners balances for Etheruem are now 112K. This figure hints at a great recovery, the balance had dipped to 94.2K on June 6th.
Back in March, the miner’s balance was a staggering high of 163.6K ETH, the figures eventually dipped in the following months.
But, now a recovery to those levels can be seen.
ETH Exchange Reserves Plunge
ETH reserves on the exchanges have significantly decreased in a year. From 26 Million ETH in June 2020 to 21 Million ETH in June 2021, the exchanges have lost over 5 Million ETH.
This figure is likely to continue to fall as more whales and investors stockpile coins in anticipation of the next bull market. The number of investors keeping coins has increased dramatically, as has the rate at which they are being held.
Another factor for the drop is staking. More and more holders are staking their currencies in the ETH2.0 proof of stake network to become validators.
At the time of writing, ETH Price is trading at $1962.17 up by 3.1% in the last 24 hours. The next resistance to break is at $2054 and the support stands at $1900.