According to fresh data presented by Glassnode, crypto investors are rushing to buy Ethereum at the current market drawdown. With the price of ETH falling to $1,200 on average, the number of non-zero wallets and wallets holding more than 0.01 ETH reached historic highs, with 83,595,439 and 23,432,551 addresses, respectively. Observing this gap in the number of addresses between the two groups studied, it can be stated that Ethereum is a very highly in-demand asset among small crypto investors.
However, according to another crypto-analytics agency, Santiment, at the same moment, ETH is garnering the highest profit taking ratio since April 2022, which may tell us that while small wallets are actively buying Ethereum, someone bigger is profitably fixing their positions.
More ETH moved to exchanges to feed impatient investors
In parallel with the big profit-taking on ETH positions, Santiment is seeing a huge amount of tokens, about 220,000 ETH, pouring into exchanges. This represents the largest daily Ethereum inflow since August 2021, according to the agency.
😮 #Ethereum saw a net of over 220k coins moving on to exchanges yesterday, the highest daily amount in 11 months. And thus far today, we're seeing the largest ratio of $ETH profit taking vs. loss transactions since April. Be cautious in these conditions. https://t.co/zGJYgf3RF9 pic.twitter.com/NtCZp5tyeM— Santiment (@santimentfeed) July 7, 2022
So, it may be assumed that someone with large positions is consistently fixing profits and supplying even more ETH to exchanges in recent days, while small wallets are actively buying up this supply. Besides the advice to be cautious with purchases in such a volatile market, it is probably also worth thinking about the price levels at which big players will load their Ethereum wallets back.