Ethereum has been one of the cryptocurrencies to maintain reasonably high levels despite several price drops in the market. However, it seems that the altcoin will not be able to hold on as it did in the past with dangerous bearish signals threatening the asset’s price.
Ethereum addresses holding more than 1,000 coins dropped
Over the past few years, Ethereum whales have enthusiastically maintained their coins. Large holders are the most confident when it comes to altcoins, with the number of wallets holding more than 1,000 coins remaining above 2018 lows. However, support has been broken by declining confidence.
Glassnode reported on Wednesday, September 20 that the number of ETH addresses holding more than 1,000 coins has finally dropped to 6,082. The last time this figure was this low was in 2018 when the bear market was in full bloom.
Addresses holding more than 1,000 coins fell to a 5-year low. Source: Glassnode
This means that this number has remained the same for the last five years. The significance of this decline is evident from what happened the last time this figure was this low. With the bearish trend recorded in 2018, expectations for a decline in the price of Ethereum have also increased.
What happened last time?
When the Ethereum metric was at this level in 2018, the altcoin price dropped significantly. Its price fell from a high of $1,367 to $80 in a 12-month period this year. The low confidence that followed will likely continue into next year, ushering in a long bearish winter for ETH.
Ethereum’s already tenuous hold on the $1,600 level is also at risk of a massive selloff. Over the past few days, there have been a series of large transactions that have moved massive amounts of ETH towards centralized exchanges.
The most recent of these transactions involved 22,343 ETH worth $36.2 million at the time of being transferred to Coinbase. Two hours later, Whale Alert flagged another large transaction involving 16,500 ETH ($26.77 million) on the OKEx crypto exchange.
Since a major reason investors move tokens to centralized exchanges is to take advantage of their deep liquidity and sell their tokens, it is possible that these whales are looking to sell these coins. In such a case, investors could see massive selling pressure for ETH, which could send its price below the $1,600 support.
ETH bulls struggle to hold $1,600 support Source: ETHUSD on tradingview.com
Featured image from Bitcoinist, chart from tradingview.com