Ants are all escaping... Ethereum 'endures' selling pressure with whale buying

▲ Ethereum (ETH)/ChatGPT generated image

In the Ethereum (ETH) market, individual investors are cashing out their assets on a large scale, but giant 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. In contrast, the wallet addresses of whale investors holding more than 1,000 ETH have steadily increased during the same period, offsetting the market's selling pressure.

On-chain data analysis firm Nansen announced that the amount of Ethereum flowing out of exchanges significantly exceeded the amount flowing in over the past week. This means that assets held on exchanges are moving to whales' personal wallets or cold storage for long-term keeping. Institutional investors are also indirectly increasing their buying proportion through Ethereum spot ETFs, absorbing the amounts offloaded by individuals.

Market experts defined this phenomenon as a 'handover' process. They analyze that market leadership is shifting as individual investors, dubbed 'ants,' engage in a sell-off, while well-capitalized entities participate in buying at low prices. In particular, the activity of whale addresses shows a pattern very similar to what was observed just before Ethereum set new record highs in the past.

The Ethereum supply shortage is expected to deepen further in the future. This is because exchange balances have fallen to all-time lows, and the amount locked through staking has increased, reducing the actual circulating supply in the market. Even in a bear market, a solid buying base is being established, which is expected to further strengthen Ethereum's technical completeness and its status as a store of value.

*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.*