Ethereum is having difficulty keeping its richest investors in line as its native token, Ether (ETH), hints at logging more losses in the near term.

Blockchain data analytics service Glassnode revealed that the number of Ethereum addresses holding at least 1,000 ETH dropped to 6,292 this Monday, the lowest reading since April 2022. At its year-to-date peak, the numbers were seven,239 in January.

Number of Ethereum addresses with balance of at least one,000 ETH. Source: Glassnode

On-chain analysts typically discover ETH distributions amongst addresses to realize retail and institutional sentiments. They consider wallets that concord above ane,000 ETH (around $3.92 million at currency exchange rates) equally "whales," primarily for their ability to influence interim market trends via large sell and/or buy orders.

But equally the numbers of these then-chosen whales drib, it reflects an ongoing selling trend among the richest Ethereum wallet owners. For instance, the number of Ethereum addresses that hold at least 10,000 ETH (or around $39.20 million) has also plunged, from 1,208 in June to i,156 at the time of this writing, mark an well-nigh four.v% turn down.

Number of Ethereum addresses with a balance of at least 10,000 ETH. Source: Glassnode

Only, on a year-to-date timeframe, the numbers have gone up from ane,065 to 1,156, just every bit the price to buy one ETH, in the same catamenia, has jumped nearly 450%.

Modest investors are accumulating

Unlike whales, wallets that concord ETH in small quantities have been at the forefront of Ether'due south 2022 price rally.

For example, Glassnode'due south data shows that the number of Ethereum addresses with a non-zero ETH rest reached an all-time loftier of over 71.23 million on Monday. That included wallets with at least 0.01 ETH (~$40), whose numbers shot up to 20.31 million versus 10.66 million at the beginning of this yr.

Meanwhile, addresses that hold at least 0.1 ETH (~$400) jumped to 6.44 one thousand thousand this Monday compared to 3.62 million on Jan. 1, 2022. That is nearly a twofold rise, signaling a college retail interest in the earth'due south second-largest cryptocurrency.

Number of Ethereum addresses with a balance of at least 0.1 ETH. Source: Glassnode

ETH eyes bullish reversal

The latest turn down in Ether whales appeared as Ether struggled to close decisively higher up $iv,000, its psychological resistance level.

On Tuesday, ETH/USD dropped by over 3.27% to an intraday depression of $3,880. Its drib came as a part of a wider correction that started after Ether tested a downwards sloping trendline as resistance on Dec. 23.

The chart below shows that the trendline is a part of a descending aqueduct that appears like a "falling wedge."

ETH/USD daily price nautical chart featuring falling wedge. Source: TradingView

In detail, falling wedges are technically bullish reversal patterns that appear later the cost trends lower inside a trading range featuring two converging trendlines. The instrument eventually breaks above the structure'due south upper trendline ahead or after reaching the apex (where two trendlines converge).

The profit target in a rising wedge scenario is mostly obtained later on adding the maximum distance betwixt the structure's upper and lower trendline to the breakout point. That puts ETH'south price en route to the $4,200–five,000 range, depending on its breakout level.

ETH/USD daily cost chart featuring falling wedge targets. Source: TradingView

However, Ether'southward toll still has plenty room to decline, toward $iii,200 in the worst-case scenario. The level is where wedge's trendlines converge.

Related: 3 reasons why Ethereum toll can drop beneath $3K by the end of 2022

Meanwhile, contained market place analyst Pentoshi said that nothing physical tin be predicted for Ether at present as information technology remains stuck between a "comport contested" and a "bull contested" surface area, every bit shown in the nautical chart below.

ETH/USD three-day cost chart. Source: TradingView, Pentoshi

"Maybe information technology'south the bottom. Don't intendance," tweeted Pentoshi on Tuesday.

"I don't like when them market gives this many times to purchase an area with of import historical context like this Would rather pay for confirmation."

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