• An Ethereum ICO participant deposited a large amount of ETH to Kraken which could lead to increased selling pressure in the Ethereum market.
• Retail investors have continued to show faith in Ethereum, indicated by the all-time high of non-zero addresses.
• The low MVRV ratio and high Long/Short difference suggested that most holders have a lower incentive to sell their holdings.
Ethereum Whale Movement
An Ethereum ICO (Initial Coin Offering) participant re-emerged after eight years and deposited 61,216 ETH ($116M) into Kraken on 19 July. This deposit has caused FUD among retail investors, as short positions taken against ETH are starting to rise.
Impact on ETH Supply and Demand Dynamics
The increase in selling activity caused by the whale’s deposit could affect supply-demand dynamics and potentially lead to ETH’s downward price movements in the short term. The future behavior of this whale will play an important role in ETH’s price movement in the future.
Retail Investors Show Faith in Ethereum
Despite the FUD caused by the whale’s deposits, retail investors have continued to show faith in Ethereum according to Glassnode, with an all-time high number of non-zero addresses reaching 102,913,926. As more retail investors hold Ethereum, they become more vulnerable to whale behavior.
Low Selling Pressure Indicated by MVRV Ratio
At press time, selling pressure on Ethereum was relatively low as indicated by its relatively low MVRV ratio which suggests that only a few ETH addresses were profitable at press time and thus had less incentive to sell their holdings. Additionally, the high Long/Short difference implies that there are more long-term holders than short-term traders who are less likely to sell their holdings.
Ethereum Profit Calculator
For those interested in checking out how these developments may affect their portfolio holdings, they can use the Ethereum Profit Calculator available online for reference purposes only.