Ethereum, known as the “king of altcoins,” has experienced notable turbulence due to recent geopolitical developments in the Middle East. Specifically, the number of Ethereum whales holding 10,000 ETH has decreased by 7%, impacting market dynamics and contributing to a drop in Ethereum’s price from highs of over $2,600, sinking to a low of $2,300 over the past week.
This development marks another challenge for Ethereum, which has faced sluggish performance in recent months. A well-known crypto analyst recently highlighted the changing behavior of substantial Ethereum investors this quarter, pointing to significant shifts in whale activities.
Impact of Declining Ethereum Whale Holdings on Price Dynamics
In a recent analysis shared on the platform X, crypto expert Ali Martinez discussed how Ethereum whales are trimming their holdings. Notably, these whales, defined as entities holding large amounts of Ether, play a pivotal role in market liquidity and pricing due to the sheer volume they control.
The Mega-Whale Address Count, a metric monitoring addresses with more than 10,000 ETH, indicates a 7% drop since July 2024. This reduction suggests either redistribution of assets or profit-taking, highlighting a shift in market sentiment, particularly among institutional investors and large-scale stakeholders.
Source: Ali_charts/X
Continued Influence on Ethereum’s Price
The reduction in these large Ethereum holders occurred simultaneously with a period of weak market performance. Despite the anticipated impact of Ethereum-based exchange-traded funds (ETFs) launched in the summer, Ethereum’s price dropped from over $3,500 in July to a low of $2,200 by August. Significant movements by whales often signal shifts in potential buying pressure, possibly leading to ongoing downward trends in Ethereum’s valuation.
Current Ethereum Price Trends
Currently, Ethereum’s price hovers around $2,400, showing a minor 0.1% decrease over the past 24 hours. However, weekly performance reflects a broader downturn, with Ethereum decreasing nearly 10% over the last week. This underscores the volatile nature of crypto markets, making adaptability essential for investors.
The price of ETH rebounds from $2,300 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
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