Ethereum’s whale dominance has recently hit an all-time high, raising concerns about the future of the network. As smaller investors hold less ETH than ever before, large ETH holders, known as whales, are quietly increasing their positions. This shift in ownership raises the question of whether this is the beginning of another bull run or if there are other forces at play.
Whales currently hold 57.35% of Ethereum’s total supply, with 104 wallets each holding over 100,000 ETH. In contrast, mid-sized investors, holding between 100 and 100,000 ETH, now control just 33.46% of the supply. Smaller investors with fewer than 100 ETH make up only 9.19% of the total supply, the smallest proportion since January 2021. This trend of larger investors accumulating more ETH has been ongoing since late 2022, indicating a strategic move by whales to position themselves for the long term.
This pattern of whale activity influencing Ethereum’s price is not new. Similar accumulation by whales in late 2020 and early 2021 led to a bull run that saw ETH reach new highs. However, there is also a cautionary tale from 2022 when whale dominance peaked, followed by a sharp price correction, highlighting the volatility of whale-driven markets.
Currently, Ethereum is priced at $4,015 with immediate resistance at $4,109. Technical indicators show cautious optimism, with the Relative Strength Index (RSI) at 58.42, indicating ETH is not yet in overbought territory. The On-Balance Volume (OBV) at -44.94 shows some investor hesitation.
Looking at investor behavior, data from IntoTheBlock shows that 74% of Ethereum holders have held their ETH for over a year, indicating strong confidence in the asset. Short-term holders are divided, with 22% buying ETH between 1 month and 12 months ago, and 4% being newer investors who bought in the past month. Profitability outlook is positive, with 94% of holders in profit, 3% breaking even, and 3% at a loss, mostly those who bought at Ethereum’s ATH of $4,891 in November 2021.
However, around 4.27 million addresses are holding 1.21 million ETH at a loss, with most purchases made between $4,093 and $4,891, close to the current price. The dominance of whales in the market raises both bullish and risky scenarios for the average investor. Continued accumulation by whales could lead to a rise in ETH price to $4,500–$5,000. On the flip side, a coordinated sell-off by whales could trigger a sudden price drop, highlighting the vulnerability of the market.
In conclusion, Ethereum’s whale dominance underscores the significant control that large players have in the market. Whether this dominance results in a new bull run or a market correction remains to be seen, emphasizing the need for vigilance as Ethereum’s future unfolds.