Ethereum Price Consolidates Amid Looming Bearish Sentiment

• The number of addresses with 1,000 or more ETH has dropped to a five-year low.
• ETH recently found support around the $1610 area after facing severe selling pressure.

Vitalik Buterin, co-founder of Ethereum, recently put forth ways to address issues of decentralization. He proposes a two-tiered staking mechanism with node operators and delegators as separate participant types.

Buterin argued that the network and its users would benefit greatly from this approach and listed many potential advantages. From the vantage point of the network, it may be possible to reap a number of benefits.

First, scalability may be considerably improved and computational overhead dropped by lowering the number of signatures per block to about 10,000. Increased difficulties for attackers seeking to hold a majority share would also improve network security and decentralization.

Bearish Pressure

According to statistics compiled by Glassnode, the number of addresses with 1,000 or more ETH has dropped to a five-year low, reaching only 6,010. This indicates that large investors are either liquidating their holdings or moving their ETH, which might have a detrimental impact on the price of Ethereum.

At the time of writing, ETH is trading at $1641, up 0.53% in the last 24 hours as per data from CMC. Moreover, the trading volume is down 16.35%. The price recently found support around the $1610 area after facing severe selling pressure. Moreover, the price has been consolidating lately.

If the price manages to go past $1660 resistance level then it will likely test $1734 level. If bulls break over this level then it will likely rally all the way till the $2000 mark. However, if the price goes below the recent support of $1610 mark then it will likely head towards $1577 support level.