How Ethereum Whales Shaving Off Their Holdings Will Impact Price

In a recent post on the social media platform X, crypto analyst Ali Martinez revealed that a particular group of Ethereum whales has been shaving their holdings over the past few months.

A recent analysis of on-chain data has revealed a noteworthy trend among Ethereum (ETH) investors, particularly those classified as "whales." According to觀察, a group of these whales has been gradually reducing their ETH holdings over the past few months.

This observation is based on the Mega-Whale Address Count, which tracks the number of addresses holding more than 10,000 units of a particular cryptocurrency. In the case of Ethereum, this metric has seen a decline of over 7% since July 2024.

notable shift in market sentiment, especially among large-scale investors and institutional players, as these entities' actions tend to have a significant impact on market liquidity and prices due to their substantial holdings.

Interestingly, this reduction in whale addresses coincides with a period where the Ethereum price has struggled. Despite the approval and launch of spot ETH exchange-traded funds (ETFs) in the first half of 2024, the altcoin's price fell from above $3,500 in July to as low as $2,200 by August.

As evident in the token's price action over the last few months, the decreasing number of large Ethereum holders could diminish buying pressure on a grand scale, leading to sluggish price movement.

Moreover, sustained profit-taking activities by these whales could potentiate downward pressure on the ETH price.

ETH Price At A Glance

At the time of writing, the price of Ethereum is hovering around $2,400, indicating an almost negligible decrease of less than 0.1% in the past 24 hours. However, the cryptocurrency's performance on the weekly timeframe is not so insignificant, as the ETH price is down by nearly 10% in the past seven days.