Ethereum whales now hold 57% of supply – Impact on ETH?

• Whale dominance in Ethereum pointed to strong bullish sentiment and potential price growth
• Concentrated holdings raised concerns about liquidity risks and potential market corrections

Ethereum [ETH]  whales are increasingly dominating the network, with 104 wallets now holding over 100,000 ETH, accounting for more than 57% of the total supply.

This significant shift in Ethereum’s distribution raises important questions about its future, particularly regarding market control and price movements. As these whales continue to accumulate, their growing dominance points to strong bullish sentiment.

However, with such concentrated holdings, how might this influence Ethereum’s price trajectory moving forward?

Whale accumulation and long-term holders: Bullish sign or a bear trap?

Ethereum’s whale accumulation has intensified alongside notable price rebounds, reflected in rising whale transaction volumes exceeding $100k and $1M.

These large investors, often categorized as long-term holders (LTHs), act as stabilizing forces during volatile cycles, reducing supply shocks when sentiment turns bearish.

Their strategy of accumulating during dips and holding through uncertainty aligns with Ethereum’s upward price trajectory in late 2024.

Source: Santiment

However, this concentration raises a critical question: is this a bullish sign or a bear trap? While growing whale dominance hints at sustained confidence and bullish momentum, it also magnifies downside risk.

A coordinated sell-off or exhaustion of buying pressure could trigger sharp reversals, highlighting the fragile balance between accumulation-driven optimism and a potential liquidity-driven correction.

Historical whale activity

Ethereum’s historical data shows a strong correlation between whale activity and price movements. Spikes in whale transactions, especially those above $1M, often precede sharp price rallies or corrections. Notably, the surge in late 2020 and early 2021 coincided with ETH’s monumental bull run, as whales strategically accumulated ahead of retail inflows. Similarly, periods of rising whale activity during market consolidations, such as mid-2022, signaled accumulation phases that stabilized prices.

Source: Santiment

Whale-driven peaks have also occasionally foreshadowed sell-offs, as seen during ETH’s pullback in 2022.

This dual impact highlights the importance of monitoring whale behavior: while accumulation often drives price growth, excessive concentration can introduce volatility if whales decide to offload their holdings, testing the market’s liquidity resilience.

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Read Ethereum’s [ETH] Price Prediction 2024-25

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What’s next for ETH?

Ethereum’s whale-driven rally has propelled its price above the $4,000 mark, with strong buying volume reinforcing bullish sentiment.

The RSI stands at 64.61, indicating ETH remains below overbought territory, suggesting further upside potential. OBV continues to rise, a clear signal that demand is driving the uptrend.

Source: TradingView

If whale accumulation persists, Ethereum could eye the $4,500-$5,000 range as the next target. However, the concentration of holdings remains a double-edged sword.

While sustained accumulation fuels optimism, history warns of sharp corrections if whales offload large positions, testing liquidity and retail confidence. The coming weeks will reveal whether this rally cements itself or faces a reversal.