Retail Investors Fleeing... Ethereum 'Withstands' Selling Pressure with Whale Buying

▲ Ethereum (ETH)/ChatGPT Generated Image

In the Ethereum (Ethereum, ETH) market, individual investors are cashing out large amounts of assets, but large whales are aggressively absorbing these amounts, forming a price support line.

According to a NewsBTC report on April 23 (local time), the number of small addresses holding less than 1 ETH on the Ethereum network has recently decreased sharply. Individual investors, unable to withstand market volatility, are depositing their holdings into exchanges and selling them. Conversely, the wallet addresses of whale investors holding more than 1,000 ETH have steadily increased during the same period, offsetting market selling pressure.

On-chain data analytics firm Nansen stated that the amount of Ethereum flowing out of exchanges over the past week significantly exceeded the amount flowing in. This signifies that assets previously held on exchanges are moving to whales' private wallets or cold storage for long-term safekeeping. Institutional investors are also indirectly increasing their buying proportion through Ethereum spot ETFs, absorbing the volume offloaded by individual investors.

Market experts define this phenomenon as a 'changing of hands' process. The analysis suggests that as individual investors, dubbed 'ants' (retail investors), engage in panic selling, well-capitalized entities are participating in low-price buying, causing a shift in market dominance. Notably, the activity of whale addresses shows a pattern very similar to what was observed just before Ethereum reached new all-time highs in the past.

The shortage of Ethereum supply is expected to deepen further in the future. This is because exchange balances have fallen to historic lows, and the amount locked up through staking has increased, reducing the actual supply circulating in the market. Even in a bear market, with a solid buying foundation being established, Ethereum's technical maturity and its status as a store of value are expected to be further strengthened.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*