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Ethereum Price Slump is Not Deterring Small Bag Holders

Ethereum price secures key support, but recovery to $4,400 will be a daunting task


Ethereum (ETH), the world’s second largest cryptocurrency by market capitalization is trading at a loss at present, and is down by 3.02% to $3,161.75. While still exchanging hands well above the $3,000 support zone, it is undoubtedly recording a series of higher highs, and lower lows, a trend that can stir an unprecedented price change in the network.

In the trailing 7-day period, Ethereum has recorded a low of $2,900.93, and a high of $3,329.28. The uptrend and corresponding downtrend shows the market has a healthy balance of both sellers, and buyers, and per current on-chain data, the network is seeing increased inflows of funds from new accounts funding up.

According to Glassnode, the number of non-zero addresses on the Ethereum blockchain just reached a 1-month high of 59,753,415, a metric that showcases that retail investors are positively moved by the positive trends in the ecosystem of late. The latest of these is the EIP 1559 upgrade, which introduced a new fee structure to the blockchain, while turning the network’s native token, the Ether to a deflationary asset.

Ethereum Addresses Over 10 Coins

The accumulation of Ethereum by small bag holders is also complimented by the increase in the number of address with more than 10 ETH coins. Per Glassnode’s data, these class of Ethereum addresses have inked a 4-month high of 273,056. 

Source Twitter | Glassnode

The accumulation of the Ether coins, as well as the gradual burn rate ushered in by the EIP 1559 upgrade is notably contributing to the scarcity of the Ethereum coins in circulation, a situation that is poised to impact on the price of the asset.

Ethereum Price Outlook

The ETH/USD Daily chart as seen on TradingView shows the price trend succumbing to the focus of the market bears, albeit, with a clearly promising short term price trend. 

ETH/USD Daily Chart (Coinbase) Source: TradingView

While the RSI is pointing toward an imminent retracement, the onchain data suggests this is poised to be a healthy correction with a revived price surge in the coming days.

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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