Andrew Kang, co-founder and partner at venture capital firm Mechanism Capital, shared his opinion on who is ready to buy and sell Ethereum (ETH) right now. From the looks of it, this list could be alarming for Ethereum bulls.
According to Kang, by the end of May 2022, there is only one category of market participants left interested in increasing Ethereum (ETH) in their portfolios.
According to Kang, traders interested in short-term scalping opportunities are likely to buy ether when it reaches round numbers or amid “fading sentiment.”
All other categories of “believers” in Ethereum (ETH) have already spent their “buy on drawdown” money. Thus, right now, no one is interested in looking to buy a second cryptocurrency.
That said, the list of sellers is growing day by day. First, institutional institutions are reducing their stake in Ethereum (ETH) because the cryptocurrency is not living up to their expectations. In addition, a number of institutional players are in dire need of money to cover their losses after the Terra (LUNA) crisis and other massive crashes in recent weeks.
Retail holders also need to sell their Ethereum assets as they are incurring losses across the board. Many projects have a similar situation – they need money to cover their expenses.
The other two categories of sellers are “short sellers” and miners because Ethereum (ETH) is not recovering from the strong decline: it reached a price of $1600 on May 27, 2022, which is 60% lower than the record high reached in November.
Last but not least, people who used to be interested in selling but were waiting for a rebound are losing hope in Ethereum (ETH)’s recovery, Kang added.