The recent victory of Ripple had a significant impact on the market, leading to a surge in prices. Many alternative coins generated substantial profits for investors.
However, there was a brief downturn over the weekend, but the market quickly recovered, renewing hope. Nevertheless, Ethereum is currently facing a challenging situation.
According to a recent tweet by Glassnode, larger and mid-sized participants have begun selling their holdings. The addresses holding over 1000 coins reached a five-year low during the early Asian trading hours on July 17. Similarly, addresses with more than 100 coins also reached an eight-month low of 46,245 recently. This decline reveals the lack of confidence among these investors.
📉 #Ethereum $ETH Number of Addresses Holding 1k+ Coins just reached a 5-year low of 6,171
Previous 5-year low of 6,172 was observed on 10 May 2022
View metric:https://t.co/iDNXAbbLRt pic.twitter.com/9AGCVv8fp0
— glassnode alerts (@glassnodealerts) July 17, 2023
Furthermore, it is worth noting that the total gas usage on the Ethereum network has dropped to a one-month low. This decline indicates that fewer people are actively using the network, which poses another fundamental obstacle.
Considering these setbacks, a correction was expected. However, Ethereum’s damage might not be severe. The dormant supply demonstrates a positive trend. The last active supply 5-7 years ago recently reached a monthly peak of 10.5 million ETH.
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Additionally, the last active supply 7-10 years ago achieved an all-time high of 3.9 million ETH. This shows that long-term holders are unaffected by the market conditions, suggesting that Ethereum could limit its losses significantly.
📈 #Ethereum $ETH Amount of Supply Last Active 5y-7y just reached a 1-month high of 10,529,913.521 ETH
Previous 1-month high of 10,529,909.663 ETH was observed on 15 July 2023
View metric:https://t.co/IEN283QP0E pic.twitter.com/h7EhHg8TV4
— glassnode alerts (@glassnodealerts) July 17, 2023
At present, ETH is trading at $1920. However, it has been unable to establish $1959 as a support level. While it briefly surpassed this level a few times this year, it lacked the necessary momentum to rally further.
Therefore, ETH will need to conquer this level to move towards its peak in 2023 and potentially establish a new high. If the fundamentals continue to decline and sellers continue to dispose of their holdings, ETH could decline to $1754 in the coming days.
