Whale Wallets Hold Significant Share of Ethereum Supply: What’s Next for the Market?

Ethereum Whales Control 57%: What Does This Mean for Price?

A recent analysis by Santiment reveals that a staggering 104 whale wallets now hold at least 100,000 ETH, accounting for a significant 57.35% of the total Ethereum supply, worth approximately $333.01 billion. This unprecedented level of control held by large investors raises concerns about centralization and its potential impact on the market.

Despite these concerns, the data suggests that whale accumulation is often associated with long-term bullish sentiment in the market. Large investors typically increase their stakes when they anticipate a rise in the asset’s value. With Ethereum being one of the leading platforms for decentralized finance (DeFi) and staking, it is not surprising that such optimism has led to an upward movement.

In contrast, wallets holding between 100-100,000 ETH have never held a smaller share of the supply than they do now, with just 33.46% of the total. The proportion of Ethereum owned by small investors who hold less than 100 ETH has plummeted to a four-year low, accounting for only 9.19% of the total.

Despite these unsettling statistics, Ethereum’s price has not been affected in any way. In fact, it has continued to trade above $4,000, indicating a strong market sentiment. This trend is suspected to be linked directly to whale accumulation, as increased demand from large investors can push prices up.

However, this concentration of wealth could lead to significant price fluctuations if these whales decide to sell their holdings. Conversely, if they hold onto their Ethereum, the upward movement is likely to continue.

Technical analysis indicates that ETH’s next resistance level lies between $4,100 and $4,200, while its initial support level stands at $3,700-$3,800, which also serves as the immediate support area. As long as ETH remains above the $4,000 mark, it is expected to continue moving upward.

As Ethereum has become a leader in DeFi and blockchain, such optimistic sentiment from investors indicates that they believe in its potential for growth.

Source: cryptotale.org