Home Altcoins News Ethereum Whales Continue Selling for Six Months, Signaling Concerns for ETH

Ethereum Whales Continue Selling for Six Months, Signaling Concerns for ETH

Ethereum Whales

Ethereum investors, on-chain data reveals that large holders, commonly referred to as “whales,” have been persistently selling their ETH over the past six months. This ongoing distribution raises significant concerns about the future price trajectory of the cryptocurrency.

The Accumulation Trend Score Indicates Widespread Selling

Analyst James Van Straten recently highlighted this issue in a post on social media platform X. He noted that the Accumulation Trend Score, a metric developed by Glassnode, has shown a consistently negative outlook for Ethereum. This score is critical as it reflects whether investors are accumulating assets or engaging in distribution.

Understanding the Accumulation Trend Score

The Accumulation Trend Score assesses net balance changes in the wallets of various investors, factoring in the size of the entities involved. A score nearing 1 indicates strong accumulation, either by large investors or a significant number of smaller holders buying up the asset. Conversely, a score close to 0 suggests a net distribution, indicating that large holders are offloading their assets rather than accumulating them.

Currently, the score for Ethereum is firmly in the red across multiple investor cohorts, suggesting that large-scale selling has taken precedence over buying. As shown in recent data, the trend shifted from a blue indicator—indicating accumulation—earlier in the year to deep red after Bitcoin’s all-time high in March. This significant shift implies that many large investors began aggressively selling their holdings shortly after.

Trends Among Different Investor Cohorts

The Accumulation Trend Score can be analyzed for specific cohorts based on wallet balances, which allows for a more granular view of market behavior. The analysis reveals that groups such as sharks (holding 100 to 1,000 ETH), whales (holding 1,000 to 10,000 ETH), and mega whales (holding over 10,000 ETH) have all been in a distribution phase. This indicates that these influential players in the Ethereum market are continuing to offload their assets.

The extended selling trend by these large holders is particularly alarming. Historically, movements by whales can influence market sentiment and pricing dynamics. The ongoing distribution suggests a lack of confidence among significant stakeholders regarding Ethereum’s immediate future.

Implications for ETH Recovery

As the data indicates, until these major cohorts return to an accumulation phase, the prospects for ETH making a significant recovery seem dim. The continuous selling pressure from whales can keep prices suppressed, making it difficult for Ethereum to gain momentum.

Current Market Conditions for Ethereum

At the time of writing, Ethereum’s price hovers around $2,400, reflecting a decline of more than 7% over the past week. The price action appears relatively stagnant, with ETH moving sideways in recent trading sessions.

This stagnant price movement, coupled with the negative sentiment from large holders, indicates that investors may be wary of entering the market.

Looking Ahead

The current situation presents a challenging environment for Ethereum. The continuous selling by whales signals a potential lack of trust in the asset, which could deter new investments. While market conditions can change rapidly, the current trend highlights the importance of monitoring the actions of large holders closely.

Analysts suggest that a reversal in the Accumulation Trend Score could signal a shift in sentiment among whales and potentially pave the way for a price recovery. Until then, however, the bearish trend in Ethereum’s price may persist.

Conclusion

The ongoing distribution of Ethereum by whales over the past six months paints a concerning picture for the cryptocurrency’s future. With the Accumulation Trend Score firmly in the red, it appears that confidence among large investors is waning. For Ethereum to recover, significant changes in investor behavior will be necessary, particularly among these influential cohorts.

As the crypto market continues to evolve, the actions of whales will remain a critical factor to watch. Investors will need to stay informed about these trends to make educated decisions in an ever-changing landscape.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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