Ethereum Whales Are Selling Their Holdings, But There’s No Need To Worry
The largest Ethereum investors are actively selling their holdings, and in the last five weeks, they have already sold more than $4.2 billion worth of Ethereum, according to the most recent Santiment data. The 25% price decline we observed in the middle of September may be the result of such intense selling pressure.
According to the movement of the asset before the 25% drop, these important stakeholders were the primary driver of ETH on the market. The actions of those stakeholders foretold how Ethereum’s price would behave, as it has been rising as the same investors have been acquiring rather than transferring coins.
The number of addresses holding between 100 and 1 million ETH indicates that whales have lost more assets than they had at the end of August and the beginning of September.
The good aspects of things – Ethereum
Since major investors typically repurchase the assets they have previously sold, whales and sharks will likely drive the price of the asset higher than we witnessed back in September even if they now control less coins than they did when ETH was trading around $1,400.
Another growth reason is the sharp increase in asset deflation following the Merge update’s adoption and Ethereum’s transformation into a deflationary network.
In terms of network issuance, Ethereum is reportedly close to reaching its pinnacle. Unfortunately, a high burning rate and low issuance are not a guarantee of an ongoing bull market, and the only things that drive asset prices are use cases with substantial network revenue.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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