As the price of Ethereum (ETH) approached the 2,000 USD level over the past week, one of the project's early investors began selling their assets. This situation has heightened concerns about further price declines in the market. However, on-chain data and trader analysis provide a different perspective on the situation. This is reported by Cointelegraph.com reports .
According to data from the analytical platform Lookonchain, a large Ethereum whale who has held tokens since the network's early years sold a total of 136 million USD worth of ETH assets last week. The investor offloaded batches of 55,000 and 9,442 ETH to exchanges at an average price of 2,041 USD. Nevertheless, it is observed that this has not become a mass trend.
"HODL waves" analysis shows that a large portion of Ethereum's total supply remains inactive over various time frames. Interestingly, the share of long-term holders (the 5-7 year cohort) has slightly increased compared to last year, rising from 8.59% to 9%. This indicates that the majority of "old" investors remain loyal to their assets.
Currently, the main market movements are driven by short-term investors. For example, the share of those holding assets for 3 to 6 months has fallen from 13.5% to 9%. This refutes the hypothesis that Ethereum OGs (early investors) are exiting the market en masse.
Currently, the ETH/USD pair is fluctuating around the psychological threshold of 2,000 USD. While traders are attempting to identify the price floor, Glassnode data shows that activity during the period in 2022 when the price dropped below 1,000 USD was significantly higher than it is now.
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