Ethereum whales have been consistently selling their holdings for the past six months, which isn’t a promising sign for ETH.
There is a lack of confidence among large investors in the cryptocurrency?
Accumulation vs selloff
Analyst James Van Straten shared this concerning trend in an X post, and he pointed out that the Accumulation Trend Score has been showing negative results for Ethereum.
This score measures whether investors are accumulating or distributing, aka selling their assets.
It considers not only the net balance changes in investors’ wallets but also the size of those wallets. When the score is close to 1, it means large investors are actively buying or many smaller holders are accumulating.
In contrast, a score near 0 indicates that distribution is happening or that accumulation is lacking.
Red alert
And unfortunately the Accumulation Trend Score for individual groups of addresses shows a troubling trend.
These groups are categorized based on their balance sizes. A chart tracking the Ethereum Accumulation Trend Score over the past year reveals that earlier in the year, there was some accumulation among investors.
But right after Bitcoin reached its all-time high in March, selling began to accelerate.
The score dropped into the red zone, indicating widespread distribution. Yes, selling slowed down in the past months, but the metric remains low.
The impact of whales
Groups of addresses holding between 100 to 1,000 ETH, 1,000 to 10,000 ETH, and over 10,000 ETH—often referred to as sharks, whales, and mega whales—are still in a distribution phase, they’re selling.
These large investors can influence market trends big time, so their ongoing selling is quite concerning for Ethereum’s prospects.
Until these groups shift back to accumulating ETH instead of selling it off, the price may struggle to make any meaningful recovery.
Have you read it yet? Church of the Smoking Chicken Fish: A memecoin with a mission?
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
