Ethereum Whale Dominance Hits Record High: What Comes Next?
Ethereum whale dominance is at its peak, and it’s hard to ignore what this means for the future. This is by far the highest ever. While small investors hold less ETH than ever before, whales are quietly accumulating more. Is this a sign of another bull market, or is it something else entirely?
Whales are in control
As of now, there are 104 wallets holding over 100,000 ETH each. This represents 57.35% of the total Ethereum supply and is the highest level ever recorded. Despite the growing power of these massive wallets, mid-sized investors (those holding 100 to 100,000 ETH) currently control only 33.46%, which is the lowest share in history.
It doesn’t look good for small investors either. Wallets with less than 100 ETH account for only 9.19% of the supply. This is their smallest share since January 2021. This trend has been building since late 2022, when big investors began actively accumulating ETH. Clearly, the whales know something and they are fighting a long game that marks the rise of Ethereum whale dominance.
History shows whales drive markets
This is not the first time whales have impacted the price of Ethereum. Back in late 2020 and early 2021, similar levels of whale accumulation sparked a massive bull run that propelled ETH to new heights. But there is another side to this. When whale dominance reaches its peak in 2022, a sharp price correction will ensue.
Whale activity doesn’t just happen – it’s often a signal. Currently, ETH price is at $4,015, with immediate resistance at $4,109. On the 4-hour chart, the most recent 20-day moving average (MA) is at $3,931, with strong support at $3,575, supported by the MA 200.
Technical indicators point to cautious optimism. The relative strength index (RSI) is at 58.42, which means that ETH is not yet in the overbought zone. However, the on-balance volume (OBV) is -44.94, reflecting the level of investor hesitancy.
Fund Inflows, Fund Outflows: Investor Segmentation
A closer look at investor behavior can add more context. According to IntoTheBlock data, 74% of Ethereum holders have kept their assets for more than a year. Short-term holders are broken down as follows:
- 22% purchased ETH between 1 month and 12 months ago.
- 4% were new investors, purchasing within the last month.
Profitability also paints a positive picture. Now:
- 94% of investors made profits.
- 3% to break even.
- Only 3% were in the red, mainly those who bought during Ethereum’s all-time high (ATH) of $4,891 in November 2021.
However, approximately 4.27 million addresses holding 1.21 million ETH still suffered losses. Most of the losses occurred when ETH was purchased between $4,093 and $4,891 – not far from current price levels.
What’s next?
So what does all this mean for the average investor? Well, it depends. From a bullish perspective, whales appear confident. They are buying Ethereum, especially during dips, which usually signals long-term optimism. If this trend continues, ETH could climb towards the $4,500 to $5,000 range.
But there are risks. When a small number of wallets hold so much supply, the market becomes fragile. Coordinated selling by these whales can cause sudden price drops. As the ETH story unfolds, this is something worth paying close attention to.
Regardless, the dominance of Ethereum whales is a stark reminder that the big players still hold the most power in this market.
