{"id":380497,"date":"2021-12-13T19:25:14","date_gmt":"2021-12-13T16:25:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/small-ethereum-investors-increase-exposure-as-eth-loses-4k-level\/"},"modified":"2021-12-13T19:25:14","modified_gmt":"2021-12-13T16:25:14","slug":"small-ethereum-investors-increase-exposure-as-eth-loses-4k-level","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/small-ethereum-investors-increase-exposure-as-eth-loses-4k-level\/","title":{"rendered":"# Small Ethereum investors increase exposure as ETH loses $4K level"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ecefde0d2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ecefde0d2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/small-ethereum-investors-increase-exposure-as-eth-loses-4k-level\/#Bounce_ahead\" >Bounce ahead?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/small-ethereum-investors-increase-exposure-as-eth-loses-4k-level\/#Exchanges_Ether_balances\" >Exchanges&#8217; Ether balances<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Small Ethereum investors increase exposure as ETH loses $4K level <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ethereum&#8217;s native token Ether (ETH) has dropped by over 18% after establishing an all-time high around $4,867 on Nov. 10, now trading near $3,900. Nonetheless, the plunge has not deterred retail investors from buying the token in small quantities.<\/p>\n<p>According to data gathered by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.glassnode.com\">Glassnode<\/a> \u2014 a blockchain analytics platform, the number of Ether addresses holding less than or equal to 0.01 ETH reached a record high level of 19.95 million on Dec. 4, the day ETH dropped to as low as $3,575 (data from Coinbase).<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/8d14eb82-2a0a-4332-86db-d604b619c788.png\"><figcaption style=\"text-align: center;\"><em>Ethereum addresses with balances less than or equal to 0.01. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Meanwhile, the number of Ethereum wallets with balances of at least 0.1 ETH also kept climbing despite Ether&#8217;s correction from $4,867 to $3,575, eventually hitting a new all-time high of 6.37 million on Dec. 12. <\/p>\n<p>As a result, the number of Ether addresses with a non-zero balance also reached a new record high of nearly 70 million on Dec. 12. In contrast, addresses holding less than or equal to 1 ETH dropped alongside prices, indicating that they were less interested in buying Ether&#8217;s sessional dips.\u00a0\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/39da68fb-2e65-4725-8f20-19ed82fb24a1.png\"><figcaption style=\"text-align: center;\"><em>Ethereum addresses with balances less than or equal to 1 ETH. Source: Glassnode<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Bounce_ahead\"><\/span>Bounce ahead?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The army of retail investors buying Ether in small quantities marches ahead as the ETH price drops toward a support confluence.<\/p>\n<p>Notably, Ether plunged Monday by over 5% to near $3,900 in a selloff inspired by similar corrections across the cryptocurrency space. Nonetheless, ETH price reached an area that has been lately attracting buyers.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/8a5552e4-546b-4e52-8523-ab353394fbdd.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD daily price chart featuring Support Confluence. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The first support came from the lower trendline of the descending channel pattern \u2014 the blacked range shown in the chart above. Meanwhile, the purpled 100-day simple moving average (100-day SMA) and the red pullback area \u2014 as it has been since Oct. 20 \u2014 raised Ether&#8217;s potential to retrace upward in the near term.<\/p>\n<p>While smaller retail investors seem to have been accumulating Ether, their larger counterparts look conflicted.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/c24ecd64-e2b0-4c9f-a26c-aa199363d6dc.png\"><figcaption style=\"text-align: center;\"><em>Ethereum addresses with balances less than or equal to 1,000 ETH. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>For instance, Glassnode data shows a marginal recovery in the buying interest by the Ethereum wallets with balances of at least 1,000 ETH. Still, overall, their numbers have gone down from near 7,200 to below 6,350 in 2021.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exchanges_Ether_balances\"><\/span>Exchanges&#8217; Ether balances<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>More upside cues come from Ether&#8217;s declining balances across all the crypto exchanges. <\/p>\n<p>The number of coins held by exchanges recovered from nearly 14 million ETH to 14.13 million ETH since Dec. 9 \u2014 which coincided with an almost 10.50% price drop \u2014 but its long-term trend remains skewed to the downside.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/3351eac0-b723-4bbc-9e4d-a06a26ea2660.png\"><figcaption style=\"text-align: center;\"><em>Ethereum balance on all exchanges versus ETH price. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>A lower ETH balance across exchanges hints at traders&#8217; intention to hold their coins or stake them in the pools of decentralized finance (DeFi) projects to earn yields instead of trading them for other assets.<\/p>\n<p><strong><em>Related:\u00a0Data shows pro traders are currently more bullish on Ethereum than Bitcoin<\/em><\/strong><\/p>\n<p>DeFi&#8217;s total value locked (TVL) sits at a new all-time high above $250 billion, according to data provided by Defi Llama, out of which Ethereum&#8217;s TVL came out to be over $180 billion.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/00a6e229-543c-4265-be60-a7afd6547d0c.png\"><figcaption style=\"text-align: center;\"><em>Total capital locked across the Ethereum ecosystem. Source: Defi Llama<\/em><\/figcaption><\/figure>\n<p>&#8220;However, Ethereum&#8217;s dominance over DeFi activity has taken a big hit in H2 2021,&#8221; reminded Delphi Digital, a crypto-focused investment firm, adding that: <\/p>\n<blockquote><p>&#8220;As the multi-chain narrative plays out, capital has moved to ecosystems like Solana, Terra, and Avalanche.&#8221;<\/p><\/blockquote>\n<p>High gas fees have been the main reason behind investors seeking potential &#8220;Ethereum killers.&#8221;<\/p>\n<p>For instance, a decentralized exchange swap costs $70 on Ethereum but $1 on Terra and Solana. Though, some analysts anticipate that Ethereum&#8217;s full transition from proof-of-work to proof-of-stake next year would solve the high gas problem.<\/p>\n<p>&#8220;Ethereum&#8217;s price will rise at a much faster rate than bitcoin, due to the move to proof of stake,&#8221;\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/markets.businessinsider.com\/news\/currencies\/cryptocurrency-predictions-2022-metaverse-nft-bitcoin-ether-gaming-cbdc-hack-2021-12\" data-amp=\"https:\/\/www-businessinsider-com.cdn.ampproject.org\/c\/s\/www.businessinsider.com\/cryptocurrency-predictions-2022-metaverse-nft-bitcoin-ether-gaming-cbdc-hack-2021-12?amp\">noted<\/a>\u00a0Tom Higgins, CEO at asset management platform Gold-i.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Nonetheless, the plunge has not deterred retail investors from buying the token in small quantities. According to data gathered&#8230;<\/p>\n","protected":false},"author":1,"featured_media":380498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvNDllM2NjYzQtMWVkZC00YjMxLTg3ODYtYzM0MGVjYTIxNDdlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,82962,81262,74877,82402,74891,74938,74939,75679,75150,75164,78261,70610,73785],"class_list":["post-380497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-coinmarketcap","tag-cryptomarket","tag-decentralized-exchange","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-market-analysis","tag-market-capitalization","tag-market-update","tag-price-analysis","tag-tech-analysis","tag-finance","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/380497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=380497"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/380497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/380498"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=380497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=380497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=380497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}