Ethereum Whales Retreat: Over 1.5% of Supply Sold Off as Price Dips
On-chain data reveals a significant shift in Ethereum's supply distribution, with large holders—often referred to as whales—steadily reducing their positions. Over the past eleven weeks, wallets containing more than 1,000 ETH have offloaded 1.5% of the total circulating supply, pushing their collective share below the 75% mark for the first time in seven months. This sustained sell-off by major players coincides with a notable decline in Ethereum's market price.
Shifting Supply Dynamics Among Investor Tiers
Analytics from Santiment highlight a contrasting trend among smaller and mid-tier Ethereum investors. Since December, retail holders (those with less than 1 ETH) have collectively increased their holdings, now accounting for over 2.3% of the cryptocurrency's supply—an unprecedented high. Similarly, mid-tier wallets, holding between 1 and 1,000 ETH, have seen their supply surpass 23%, a level not observed since July. This accumulation by smaller investors is potentially driven by increasing staking activity within the Ethereum network. While smaller investors buy, the market's largest entities are clearly in a distribution phase. This prolonged selling by Ethereum sharks and whales, who exert considerable influence due to the sheer volume of their assets, has contributed to recent bearish price movements. The current market conditions suggest that if this trend of distribution from major holders persists, Ethereum's price could continue its downward trajectory. The coming days will be crucial in determining whether this whale sell-off will reverse or intensify, further impacting market stability.
Ethereum's Recent Price Performance
Amidst this whale activity, Ethereum has experienced a significant price correction. The cryptocurrency is currently trading around $1,950, reflecting a nearly 14% drop over the last week. This price decline appears to directly correlate with the ongoing supply distribution from large holders, underscoring the influence of these major market participants on Ethereum's valuation.
