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

Wed, 05/31/2023 - 09:19
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Arman Shirinyan
Ethereum facing significant selling pressure as investors are actively dropping their holdings
Ethereum Whales Dropped All of Their Holdings: Bull Market Postponed?
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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.

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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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.