According to Sentiment, a blockchain network analysis service, the ten biggest ETH addresses (the so-called whales) now account for almost 20.58% of the total Ethereum supply.

Such concentration is unprecedented, so what does this mean? Perhaps using the buy-low-sell-high principle, the whales are stocking up on Ethereum after it has lost nearly 60% of its value since peaking in May.

These observations, in turn, lead to the realization that ETHUSD is near its lows, according to the major market participants. But in fact, there are no guarantees that we will see a rise in the quotes anytime soon, even despite the strong fundamentals.

Volume analysis sends negative indications.

On June 22 (see fig. 1), the price dropped below May’s low and reached the multi-day support level (see fig. 2). The fall slowed down, activating large accumulations of buyer stop-loss orders.

The rising price paired with increased volumes on June 28 (see fig. 3) gives some hope that demand has increased. However, the formation of the bounce-off of the trend line has slowed down. Figure 4 covers several candlesticks with long upper shadows indicating the presence of offers around the 2400 level.

July 8 is a very important candlestick (see fig. 5) because it has the highest volume compared to other July candlesticks and shows a downward momentum. The July 12 candlestick (see fig. 6) indicates the continued dominance of sales, albeit less eloquently.

Thus, we can see the indicators of the presence of sales above the long-term support line (see fig. 2). The inability of the market to bounce off the support line increases the chances of a breakout. If that happens, whales will be able to accumulate even larger amounts of Ethereum at even better prices.

This outlook represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.