The crypto market has recently undergone a significant downturn due to escalating geopolitical tensions in the Middle East a number of large-cap assets are dying their recently accumulated profits from the past week. Specifically, the price of Ethereum crashed from above $2,600 to $2,300 sometime during the week.
This represents a new setback for the ‘king of altcoins’, which has not delivered a particularly positive performance in recent months. Interestingly, a popular crypto expert on
How Ethereum whales dispose of their holdings will impact the price
In a recent post on social media platform X, crypto analyst Ali Martinez says revealed that a certain group of Ethereum whales have been shaving their assets in recent months. This on-chain disclosure is based on the Mega-Whale Address Count, which tracks the number of addresses containing more than 10,000 units of a given cryptocurrency.
Whales refer to entities (individuals and organizations) that own significant amounts of a specific cryptocurrency (in this case Ether). Investors typically pay extra attention to whale movements because these large entities tend to exert significant influence on market liquidity and prices due to their significant assets.
Source: Ali_charts/X
According to Martinez, the number is whale addresses Holdings of more than 10,000 ETH have fallen by more than 7% since July 2024. This decline in the number of large Ethereum holders indicates some redistribution or profit-taking and signals a notable shift in market sentiment, especially among large-scale investors and institutional players. .
Interestingly, this reduction in the number of whale addresses coincided with a period when the Ethereum price was struggling. Despite the approval and launch of ridicule ETH Exchange Traded Funds (ETFs), the price of the altcoin fell from over $3,500 in July to $2,200 in August.
As already seen in the token’s price action in recent months, the decline in the number of large Ethereum holders could reduce buying pressure on a large scale, leading to sluggish price movements. Moreover, continued profit-taking activities by these whales could reinforce downward pressure on the ETH price.
ETH price at a glance
At the time of writing, Ethereum’s price is just above 2,400 points, reflecting an insignificant decline of 0.1% over the past 24 hours. The cryptocurrency performance on the weekly time frame is not that insignificant, as ETH price is down almost 10% over the past seven days.
The price of ETH rebounds from $2,300 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView