Whales Abandon Ship? Ethereum’s Value In Jeopardy As Major Holders Liquidate

Ethereum (ETH), a significant player in the crypto space, has recently come under scrutiny due to some concerning on-chain activities. Notably, the number of addresses holding significant amounts of Ethereum has declined , and some long-term holders appear to be liquidating their positions, potentially posing threats to Ethereum’s value. Whale Watch: A Steep Decline In Ethereum Holdings On-chain analytics have been instrumental in offering real-time insights into crypto market trends. Recent revelations have highlighted a downturn in Ethereum’s holding patterns that might have deeper implications for the digital asset’s value and the market. According to Glassnode, a leading on-chain analytic platform, the number of addresses holding 1,000 Ethereum (ETH) coins or more has plummeted to a 5-year low. Precisely, these addresses, often termed ‘whale addresses’ in the crypto world, have decreased to 6,082. Such a sharp decline can be attributed to the liquidation activities of some of Ethereum’s long-term holders. It is worth noting that this contraction in whale holdings could potentially increase the susceptibility of Ethereum to market bears, potentially initiating a downward price trajectory. The impact of such sales on the market is apparent. When large quantities of a cryptocurrency , such as Ethereum, are offloaded, it often leads to a considerable influx of selling pressure. This can cause panic among smaller investors, prompting further sales and possibly leading to a price drop. Additional Pressures From Dormant Wallets Interestingly, another layer adds to Ethereum’s selling pressure alongside the decrease in large-scale holdings. According to data from Lookonchain, a renowned on-chain data analysis firm, a dormant Ethereum wallet, untouched for around four years, has suddenly sprung into action. The wallet in question liquidated its entire ETH holding, quickly pushing roughly $4.81 million worth of the altcoin into the market. A wallet that had been dormant for 4 years sold all 2,591 $ETH for $4.18M stablecoins 6 hours ago.https://t.co/et78rXHG5u pic.twitter.com/pJanMLxwA3 — Lookonchain (@lookonchain) September 20, 2023 Such unexpected sales from long-inactive wallets could raise alarms in the market. While the exact reasons behind such liquidations often remain concealed, they invariably amplify the selling pressures on the affected cryptocurrency , which, in this case, is Ethereum. Meanwhile, Ethereum’s price has seen a slight bullish trajectory over the past week, up 1.4%. The asset has moved from a low of $1,596 seen last Wednesday to trade above $1,650 on Monday before retracing to $1,626 , at the time of writing down by 1.8% in the past 24 hours. Featured image from Unpslah, Chart from TradingView