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Ethereum Whales Dropped All of Their Holdings: Bull Market Postponed?

source-logo  u.today  + 1 more 31 May 2023 10:49, UTC

The Ethereum (ETH) market faces significant challenges as recent data reveal a substantial decline in holdings by major investors. According to data from blockchain analytics, the number of Ethereum addresses holding 1,000+ coins has reached a 10-month low of 6,268. This low was previously observed in November 2022 with a slightly higher count of 6,270.

This downward trajectory of whale holdings is typically a bearish sign, suggesting that large-scale investors may be losing faith in Ethereum's short-term prospects. Such a shift in the sentiment of significant investors often has a noticeable impact on the market, primarily because their transactions are sizable enough to influence Ethereum's price.

📉 #Ethereum $ETH Number of Addresses Holding 1k+ Coins just reached a 10-month low of 6,268

Previous 10-month low of 6,270 was observed on 02 November 2022

View metric:https://t.co/iDNXAbcjH1 pic.twitter.com/SNVGSIJR0j

— glassnode alerts (@glassnodealerts) May 31, 2023

Currently, Ethereum trades at around $1,870, nearing the 50-day Exponential Moving Average (EMA). This technical level could become a potential consolidation point for the second largest cryptocurrency by market cap. However, the descending trading volume implies decreasing interest among traders, potentially affecting Ethereum's price stability.

Such movements among whale investors could be attributed to a range of factors. Some whales might be taking profits following Ethereum's previous rallies, while others might be reallocating their assets in response to market trends. It is also possible that concerns about Ethereum's scalability and high transaction fees are causing some whales to reduce their holdings.

It is noteworthy to mention that Ethereum is on the verge of receiving a major upgrade aiming to improve scalability, security and sustainability. This upgrade might impact investor sentiment as the potential risks and benefits of the transition become clearer.

The diminished holdings of Ethereum by whales might seem concerning for some investors, as it can indicate a loss of confidence or signal a market downturn.


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