Ethereum Price Analysis 22/3: $11M Worth of Ethereum Locked in Wallets With Less Than 0.0005 ETH

SNEAK PEEK

• The Ethereum wallets with less than 0.0005 ETH contain a total of 6,242 Ethereum tokens (~$11M).
• These wallets are considered to be dormant, and the funds they contain are effectively out of circulation.
• The major cause of these dormant wallets is the high transaction fees associated with transferring even a small amount of ETH.

According to recent data, there are approximately 40 million Ethereum wallets that hold less than 0.0005 ETH, which translates to roughly $0.90. This amounts to around 6242 ETH, or $11 million, which is effectively out of circulation due to the low value of these wallets. 

It is unlikely that owners of these wallets would want to transfer their holdings to exchange and swap them out, as the transaction fees at 20 gwei would exceed the value of their holdings. This creates a unique challenge for the Ethereum community and raises questions about the feasibility of micro-transactions on the network.

The large number of wallets holding such small amounts of ETH indicates that there may be a significant portion of the Ethereum community that is unable or unwilling to participate in the network’s ecosystem due to the cost of transactions. This could limit the growth of Ethereum and its adoption as a payment system, especially for small-scale transactions. 

Additionally, the fact that these small amounts of ETH are effectively out of circulation could have an impact on the overall supply of ETH, which could have implications for its market value. As such, it will be interesting to see how the Ethereum community addresses this issue and whether new solutions emerge to enable micro-transactions on the network.

Ethereum Price Analysis

The latest Ethereum price analysis indicates that the cryptocurrency has been in an uptrend for the past 24 hours. This is seen by the recent surge in the price of ETH to $1,792, which saw a 3.07% increase over the past 24 hours. 

The trendline shows that ETH has been steadily increasing as more investors have been attracted to the cryptocurrency, and this could be due to its potential for development in the DeFi space.

The market sentiment for Ethereum remains bullish, with the bulls trying to break past the $1,836 resistance level. If the bulls manage to break past this level, then ETH could see a stronger uptrend in the near future. However, if bears manage to keep ETH prices suppressed, then the cryptocurrency could see a downtrend in the coming days toward the support level of $1,739.

The market capitalization of ETH is currently at $219 billion, which is a rise of  3.07 percent in the last 24 hours. The 24-hour volume is around $10 billion, with a circulating supply of 122 million ETH coins, indicating that there is still plenty of room for growth.

Looking at daily technical indicators, the MACD for ETH is currently bullish, and Ethereum will likely remain in an uptrend in the near future. The MACD line has recently crossed above the signal line, which is generally seen as a sign of bullish momentum. 

Furthermore, the RSI for ETH is currently at 61.84, indicating that Ethereum is still in a neutral zone. The moving average indicator also suggests a bullish trend, with the 50-day MA above the 200-day MA line.

Overall, Ethereum appears to be riding an uptrend, with plenty of potential for further development in the coming days. The bulls are currently struggling to break past the $1,836 resistance level, and if they manage to do so, then ETH could see a major surge in price.  

However, bears could also try to keep prices suppressed, and if that happens, Ethereum could see a downtrend toward the support levels of $1,739.

Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always do your own research and consult with a financial advisor before making investment decisions.

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• Source: https://investorbites.com/ethereum-price-analysis-22-3/