According to crypto analysis firm Glassnode, Ethereum (ETH) wallets with more than 1000 coins have reached a 10-month low of 6268. Previously, this number reached a low of 6270 on Nov. 2, 2022.
📉 #Ethereum $ETH Number of Addresses Holding 1k+ Coins just reached a 10-month low of 6,268— glassnode alerts (@glassnodealerts) May 31, 2023
Previous 10-month low of 6,270 was observed on 02 November 2022
View metric:https://t.co/iDNXAbcjH1 pic.twitter.com/SNVGSIJR0j
ETH is currently trading at $1868, down by 2.4% in the last 24 hours. The whale outflows could be responsible for the dip in ETH prices. Even Bitcoin has fallen by 3.2% in the same time frame. However, the reason for the whales reducing their holdings is unclear.
Why are Ethereum Whales Dumping their ETH?
The second-largest cryptocurrency by market capitalization has been consolidating at its current level. However, the declining trading volume suggested traders’ interest is waning, which could have an impact on the stability of Ethereum’s price.
Numerous causes may have contributed to these changes in whale sentiment. Following recent rises in Ethereum, some whales might be taking profits, while others might be reallocating their holdings in response to market trends.
It’s also possible that some whales are reducing their holdings because of worries about Ethereum’s scalability and hefty transaction costs. It is important to highlight that Ethereum is about to undergo a significant update to enhance its scalability, security, and sustainability. The upgrade might bring some of the whales back into the fold. Furthermore, Litecoin (LTC) will undergo its halving event on August 10. ETH whales might have caught the attention of LTC as most assets witness a price surge in times of a halving.
Nonetheless, whales losing interest in the asset could be alarming to some investors. Whale movements often set the tone of how an asset behaves. With whales reducing their holdings, many could read into it as the bull run being postponed, or even not being here at all.