Ethereum: Can rising adoption offset whale sell-offs?

• ETH accumulation has dropped in the last few weeks.
• ETH had a positive trend over the weekend.

Ethereum [ETH] has experienced significant volatility over the past few months, with on-chain metrics presenting mixed signals. Data indicates that some Ethereum whales have paused their accumulation, suggesting a potential shift in sentiment among large holders.

However, despite this, Ethereum recently recorded a four-month high in network growth, a positive indicator of increased activity and adoption on the network.

Ethereum whales scale back on accumulation

An analysis of Ethereum addresses on Glassnode reveals differing reactions to recent price movements across various holder categories. Addresses holding 10-100 ETH have remained relatively stable, indicating neither significant sell-offs nor new accumulations.

However, more significant movements were observed among larger addresses. For addresses holding 1,000-10,000 ETH, accumulation halted towards the end of August.

Also, there has since been a noticeable decline in holdings, indicating redistribution or sell-offs. This shift suggests that mid-tier whales are reducing their exposure.

Source: Glassnode

Furthermore, larger addresses holding 10,000 ETH or more scaled back their accumulation even earlier.

Data shows that these addresses stopped accumulating around July, and similar to the 1,000 ETH addresses, they have also been redistributing or selling off their holdings since then.

Recent Ethereum network growth flashes positive signals

The recent decline in accumulation from whale addresses could be interpreted as a negative indicator for Ethereum, signaling caution among large holders. However, the network’s positive growth in new addresses provides a more optimistic outlook. 

Source: Santiment

According to data from Santiment, Ethereum recently reached a four-month high in daily new addresses, rising to over 126,000. This is the highest level since June and is notable because it occurred on a Sunday.

This day typically experiences lower network activity.

ETH ends the weekend positively

An Ethereum analysis on the daily chart shows positive price movement over the weekend. At the close of trading on 8th September, ETH saw a 1% increase, trading around $2,297.

This followed a 2% rise in the previous session. As of this writing, ETH has entered the $2,300 price range, with an increase of less than 1%.

The recent spike in network growth, marked by a surge in new addresses, highlights growing interest in Ethereum, even amid market volatility.

While whale accumulation has slowed, the increase in network participation suggests that smaller investors or new entrants are becoming more active in the Ethereum ecosystem. This renewed interest could help balance the overall market dynamics.

 Read Ethereum (ETH) Price Prediction 2024-25

The interaction between slowing whale activity and rising network growth will be critical in determining Ethereum’s future price movements and network strength.

If smaller investors continue to show interest, this could offset some of the downward pressure from reduced whale accumulation, potentially supporting ETH’s price in the near term.