Ethereum price at risk of decline as a network activity and whale holdings decline
- Ethereum network’s active addresses in the past 24 hours declined, as sellers extended their dominance in ETH.
- Ethereum whales holding between 10,000 and 1,000,000 Ether tokens have shed their holdings of the altcoin over the past two days.
- ETH supply on exchanges climbed as price risks decline below the $1,800 level.
Ethereum network activity has declined after weeks of high activity from addresses, as seen on crypto intelligence tracker Santiment. The reduction in active addresses in the ETH network, and decline in holdings by large wallet investors are two factors that are likely to negatively influence Ethereum price.
Also read: Ethereum price likely to reach $2,000, according to these bullish on-chain metrics
Ethereum on-chain metrics turn bearish
Ethereum’s on-chain metrics like daily address activity, whale holdings and supply on exchanges have turned bearish over the past 48 hours. Based on data from crypto intelligence tracker Santiment, there is a decline in daily active addresses over the past two days. ETH price declined from $2,011 on July 13 to $1,887 at the time of writing
 [20.05.35, 22 Jul, 2023]-638256339187059628.png)
Active addresses (24 hour) vs ETH price
As seen in the chart below, ETH supply on exchanges has increased between July 16 and the time of writing, after consistent decline over a multi-month period. Whale activity, represented by yellow and blue bars, has declined since its peak in mid-July. Bearish on-chain metrics have likely fueled the spike in selling pressure on Ethereum.
 [20.08.50, 22 Jul, 2023]-638256339513359897.png)
Supply held on exchanges, whale transaction count, ETH price
Whales in two segments, holding between 10,000 and 100,000 ETH tokens and 100,000 and 1,000,000 Ether have shed their holdings over the past two days. This is another bearish on-chain metric that points towards a decline in ETH price in the short term.
At the time of writing, Ethereum price is $1,888.30 and the altcoin has sustained above the key psychological level of $1,800.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
