Ethereum bulls takeover as ETH supply on exchange plummets
|- Top 10 non-exchange Ethereum whales hold six times more ETH tokens than large wallet investors’ fueling a bullish narrative.
- Analysts have identified that Ethereum price is close to critical support, could start a fresh rally if it clears the resistance zone.
- The Ethereum reserves of the top whale addresses across exchanges have plummeted to 3.82 million tokens.
The top 10 non-exchange Ethereum whales have over 24 million ETH tokens, effectively pulling them out of circulation and reducing supply. The level dwarfs the amount held by exchange whales. Proponents consider this a ‘takeover’ by Ethereum bulls that predicts a price rally in the altcoin.
Ethereum supply on exchanges continues to drop
Based on data from the crypto intelligence firm, Santiment, the ten largest Ethereum addresses across exchanges hold 3.82 million tokens. This is the lowest level held by large investors since the Ethereum price rally started.
Interestingly, the top-10 non-exchange whale addresses held over six times the Ethereum tokens that exchange based investors held. Dwarfing exchange whales, non-exchange whales held the majority of the Ethereum tokens.
Whilst non-exchange whales’ holdings are relatively high, they have been falling. At the same time the Ethereum balance across exchanges has remained relatively low. This implies a fall in selling pressure and the possibility of a takeover by bulls.
Ethereum non-exchange vs exchange whale holdings
Analysts have evaluated the Ethereum price trend and predicted that the altcoin’s price could start a fresh rally if it remains above critical support. @Koolaid_crypto, a cryptocurrency analyst on Twitter considers $3,710 as a critical support level for Ethereum.
If Ethereum price sustains above $3,710, bulls could takeover and start a new rally to all-time high.
$ETH approaching critical support. #ETH #ETHusdt #Ethereum #cryptofam pic.twitter.com/OMCnifburn
— Crypto Koolaid (@Koolaid_crypto) December 13, 2021
$ETH approaching critical support. #ETH #ETHusdt #Ethereum #cryptofam pic.twitter.com/OMCnifburn
— Crypto Koolaid (@Koolaid_crypto) December 13, 2021
Crypto market fear and greed index is a useful contrarian indicator to determine the sentiment among traders. The last time this indicator read a fearful market (September 2021), a 60% increase in Ethereum price followed.
The market is fearful yet again, and proponents expect the altcoin to start its climb.
Crypto fear and greed index over time
FXStreet analysts have predicted that Ethereum price is primed to revisit $3,800, as support weakens.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.