- Ethereum’s largest holders now control over 43% of the total supply, signaling confidence.
- Whale accumulation suggests long-term belief in Ethereum despite market volatility.
- Ethereum’s price patterns echo 2019 trends, hinting at potential short-term dips before growth.
According to data from IntoTheBlock, Ethereum’s largest holders have steadily expanded their control. A recent post on X revealed that these major ETH investors have been gradually increasing their holdings since 2019, with this trend accelerating after the anticipated Shanghai upgrade in early 2023.
Ethereum’s largest holders now own more than 43% of the total token supply, which is a increase compared to previous years. This makes them come a close second to the 48% of ETH retail investors hold. The growth of whales’ holding is regarded as a positive sign since such investors are likely to hold their assets for a longer period and expect the prices to rise.
Whale Influence on Ethereum
The high concentration in the supply side due to a few large holders has many implications on the price trend of ETH and the market. The accumulation of these addresses with ETH is pointing towards a steady belief in the potential of the Ethereum blockchain even though crypto markets are very much volatile.
Ethereum’s price action at the moment also looks similar to what happened in 2019. Analyst Benjamin Cowen pointed out a wedge pattern, where higher lows are 10x larger than those of the 2019 cycle. This implies that token is mimicking a pattern that has been seen in the past. ETH also formed a wedge in 2019 and dropped into it just before the first Federal Reserve rate cut. The same could happen in 2024 with the help of macroeconomic factors and further decrease of the rates.
Historical Patterns Echo 2019 Trends
Cowen also pointed out that 2019 Ethereum was trading below its wedge after the first rate cut before it hit its bottom against Bitcoin (ETH/BTC). If the same trend continues, token may experience a short-term decline before rebounding with more force. This pattern coupled with the gradual accumulation by whales supports the theory that coin is well suited for long-term gains despite possible short term fluctuations.
As of now, the retail investors own 48% of Ethereum’s supply, so the dynamics between large and small investors will remain crucial for market development. While whales are amassing, retail traders continue to play a very significant role. A lot of attention will be paid to the coin’s performance in 2024, with the possible changes in the macroeconomic indicators such as interest rate cuts.
This coupled with the current accumulation of Ethereum by whales and the previous price trend shows that there is a positive outlook even in the short term volatility. As of now, ETH is supported by both retail and institutional investors and the future seems bright for cryptocurrency as it continues to grow and develop.
