- The share of Ethereum in the hands of whales has grown significantly.
- This supply concentration has both positive and negative leaning.
Ethereum’s whale dominance has reached new highs, with 104 wallets containing at least 100,000 ETH, or 57% of the total supply. This amount, which equals approximately $333.01 billion, suggests increasing confidence from the largest Ethereum holders. At the same time, there are ongoing questions about centralization.
Whale Transaction Details from Santiment
Santiment, an on-chain data analytics platform, brought the market’s attention to the intense Ethereum whale activity. Historically, whale accumulation indicates long-term bullishness for the cryptocurrency involved. An increase in key stakeholders’ holdings might serve as a precursor to a long-term upward movement.
This trend is especially true for Ethereum, particularly as the asset utilizes much of its supply for its expanding staking and DeFi ecosystem. However, the overall distribution of supply presents a contradictory view.
Santiment noted that wallets with 100 to 100,000 ETH hold only 33-46% of the supply, the recorded lowest ratio. This group keeps getting smaller, suggesting mid-tier investors are either selling their holdings or combining them into larger entities.
There are currently 104 whale wallets holding at least 100K Ethereum. Their combined holdings currently sit at 57.35% of all existing ETH tokens, currently worth ~$333.1B.
Meanwhile, wallets with 100-100K hold their lowest ratio of supply in history, 33.46%. And sub-100 ETH… pic.twitter.com/9qDN3lotQy
— Santiment (@santimentfeed) December 17, 2024
Additionally, sub-wallets holding 100 ETH have hit an almost 4-year low of 9.19%. This decline has raised questions about the retail investors’ sentiments, suggesting that they are likely not building as aggressively as whales.
However, the whale accumulation is consistent with Ethereum’s recent price recovery. According to the chart analysis, the altcoin recently climbed above the $4,000 mark, indicating strength. Ethereum liquidity could be reduced drastically if whales control the supply. This scenario could lead to surging prices soon.
As CNF reported, Ethereum’s rise to $4,000 coincides with an Ethereum Exchange-Traded Funds market inflow. CoinShares reported that Ethereum has maintained positive investment flows for seven consecutive weeks, highlighting its growing institutional appeal.
Impact of Whale Movement and Forecasts
The decision of whales to sell their ETH holdings also raises the possibility of price volatility. As of this writing, ETH trades at $3,948, up 10.5% in the last week and 28.5% in the past month. Ethereum’s immediate support is between $3,700 and $3,800, while its next resistance level is between $4,100 and $4,200.
The immediate support might open the way for a retest of higher levels if ETH maintains a value above $4,000. However, inflows and outflows from large investors could substantially impact ETH’s price. Therefore, investors are advised to keep a close watch on whale movements.
The high concentration of Ethereum’s supply in whale wallet shows optimism about the altcoin’s potential as a key component of DeFi staking and larger blockchain infrastructure. However, Ethereum’s risks are also pending due to the whale activity.
The bullish momentum appears unbroken, but long-term sustainability will depend on the balance of large supply holders.
