With 104 wallets containing at least 100,000 Ethereum, or a startling 57% of the total supply, Ethereum's whale dominance has hit an all-time high. This amount, which equals about $333.01 billion, raises questions about centralization while also indicating that the largest holders have a high level of confidence. Whale accumulation has historically indicated long-term bullishness.
A belief in long-term upward movement is frequently demonstrated when important stakeholders increase their holdings. This is especially true for Ethereum, a nine-year-old asset that uses a sizable amount of its supply for its expanding DeFi and staking ecosystem. The overall distribution of supply, however, presents a contradictory image.
đł There are currently 104 whale wallets holding at least 100K Ethereum. Their combined holdings currently sit at 57.35% of all existing ETH tokens, currently worth ~$333.1B.Meanwhile, wallets with 100-100K hold their lowest ratio of supply in history, 33.46%. And sub-100 ETH⌠pic.twitter.com/9qDN3lotQy
â Santiment (@santimentfeed) December 17, 2024
Wallets with 100-100,000 ETH are holding only 33-46% of the supply, which is the lowest ratio ever. Due to mid-tier investors either selling their holdings or combining them into larger entities, this group has been getting smaller. Just 9.19%, or almost a four-year low, are held by wallets with less than $100 in value, which are usually owned by retail investors. This drop calls into question the sentiment of retail investors, as it suggests that they might not be building as aggressively as whales.
With rising volume, Ethereum's price recently broke through the $4,000 mark, indicating strength, according to the chart analysis. The story of whale accumulation is consistent with this recovery. If whales control the supply, there may be less liquidity available, which could raise prices soon. In the event that any of these sizable wallets decide to sell, it also raises the possibility of price volatility. In terms of market performance, Ethereum's next resistance level is located between $4,100 and $4,200, while its immediate support is located between $3,700 and $3,800.
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It might open the door for a retest of higher levels if ETH maintains a volume above $4,000. Large inflows or outflows, however, can have a significant impact, so investors should keep a close eye on whale movements. Although there are risks associated with the significant concentration of ETH's supply in whale wallets, this also shows optimism about Ethereum's potential as a key component of DeFi staking and larger blockchain infrastructure. As of right now, the bullish momentum seems to be unbroken, but long-term sustainability will depend on supply holders remaining balanced.
