Ethereum, which has managed a return on investment (ROI) of 8700%, has caused a lot of market thinking lately. In fact, following the market drop, Ethereum has lost more than 51% of its value since its ATH was $4,878.26 three months ago.
Most profitable
And yet, IntoTheBlock data seems to show that 67% of Ethereum holders are on the money. This basically means that the token is profitable for these investors at recent levels.
2% of all holders at Money or breakeven without any gain or loss. On the contrary, the remaining holders are suffering a loss as the current price is lower than the average purchase cost of these holders.
Source: Intotheblock
And, looking at the concentration of large holders, whales account for more than 1% of the total circulating supply standing at 42%.
Having said that, a recent release by online chain analysis agency Santiment also indicates that altcoins with the top non-exchange whale holdings are on the rise. In fact, addresses are at an all-time high (ATH) of 26.22 million ETH.
🐳 # EthereumThe top non-exchange whale addresses of #AllTimeHigh 26.22m $ ETH on hold, as the weak are freeing up their coins during this sale. Meanwhile, the head $ ETH exchange address has decreased to 3.52m $ ETH, the lowest amount since August 2015. 😮https://t.co/xDgiDO0xbK pic.twitter.com/hPy5mCLBx3
– Santiment (@santimentfeed) January 24, 2022
What are the whales doing?
The catch here is that an Ethereum Whale just bought 500 million SHIB tokens. If we look at the last 24 hours, WhaleStats shows that almost 7000 ETH are in the top 1000 whale wallets and about 29,000 ETH moved out of these whale wallets. This means that these large holders can diversify their Ethereum holdings into other currencies.
Source: Whalestats
What lowers the price?
Amid falling prices, Cobo Wallet co-founder Shenyu has noted that if Ethereum falls further to $1,900, $600 million on MakerDAO will be liquidated, says Chinese journalist Coin Wu report. A further drop to $1,400 could see $1.7 billion in similar liquidations.
One of the reasons indicated for the pressure on Ethereum is NFT issuers. Thousands of Ethereum tokens are said to have been moved from NFT marketplaces like OpenSea to exchanges, further increasing exchange capital inflows.
OpenSea and NFT issuers could be one of the pressures for ETH to crash. In the past two weeks, the amount of ETH transferred directly from OpenSea Wallet to Coinbase reached 21,000 and the amount of ETH transferred to royalty distributors reached 35,300. The source: @jx_block pic.twitter.com/WxuDwk3xic
– Wu Blockchain (@WuBlockchain) January 24, 2022
However, that is not all.
Net Transfers volume from/to All Exchanges stood near -59,000 on Jan. 24. This is an indication that more ETH is flowing out of exchanges than in.
Source: Glassnode
On the other hand, if we look at the week ending January 21, the Common Currency Digital Asset Fund Flow remains negative for Ethereum for the sixth week. Still nothing positive for alt on this front as total inflows and outflows were $16 million last week.
Is a bigger shake coming?
The price of Ethereum may be reacting to various factors at this point, but the market should prepare for other regulatory changes that could come this year. Recently, Hayden Adams, the founder of the largest decentralized exchange protocol on Ethereum, Uniswap, took to Twitter to say that JP Morgan Chase has closed its bank. account “Without notice.”
In response, the former CFTC commissioner said that it To be
“Likely a shadow crypto bankroll by @federalreserve or @USOCC bank examiners, with direction from above.”
As a result, the crypto market is likely to see greater changes, especially with President Biden’s executive order reportedly set to be implemented next month.
Also read: With crypto winter returning, the White House is rolling out big plans for the sector