Ethereum Whale Selloff Continues As Supply Share Drops Under 75%

On-chain data shows the Ethereum wallets with more than 1,000 ETH have reduced their holdings over the last eleven weeks, shedding 1.5% of the ETH supply.

Ethereum Whales Have Distributed Tokens Equivalent To 1.5% Of The Supply

As explained by on-chain analytics firm Santiment in an X post, Ethereum addresses with more than 1,000 ETH have participated in net selling since Christmas. The indicator of relevance here is the “Supply Distribution,” which tells us about the percentage of the total circulating ETH supply that a given wallet group is holding.

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Addresses are placed into these cohorts based on the number of tokens that they are carrying in their balance. The 1 to 10 coins group, for instance, includes all investors owning between 1 and 10 ETH.

Now, here is the chart for the Ethereum Supply Distribution shared by Santiment that shows the trend in the indicator for three wallet ranges: 0 to 1 coins, 1 to 1,000 coins, and 1,000+ coins.

As displayed in the above graph, the smallest of Ethereum investors, retail holding less than 1 ETH, have seen their combined supply go up since December. This group now holds more than 2.3% of the cryptocurrency’s supply, the highest level ever.

The mid-tier wallets with 1 to 1,000 ETH have seen a similar trajectory in this period, with their supply breaking the 23% mark for the first time since July. The growth in these addresses could lie in staking.

While the smaller investors have been accumulating, the same hasn’t been true for the highest end of the market: those with more than 1,000 ETH. This range includes cohorts like the sharks and whales, who are considered key holders of the cryptocurrency due to the notable size of their holdings.

Over the last eleven weeks, these large entities have distributed 1.5% of the total ETH supply. This selloff has taken their supply under the 75% level, the lowest in seven months.

Alongside this phase of selling from the sharks and whales, the Ethereum price has plummeted, and it’s possible that this bearish price action could only continue in the near future if the distribution maintains. It now remains to be seen whether the Supply Distribution of the 1,000+ ETH investors will remain in a downtrend in the coming days or if a reversal will appear.

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A digital asset that has seen the reverse behavior from its top wallets is Pepe. As highlighted by Santiment in another X post, the 100 largest wallets of the memecoin have participated in notable accumulation over the past four months.

In total, these humongous wallets have bought 23.02 trillion PEPE during this period. As the analytics firm explained:

Retail sentiment is very bearish at the moment toward Pepe and meme coins, but expect that coins with heavy accumulation will inevitably have another breakout once Bitcoin is able to see some sustained bullish momentum.

ETH Price

At the time of writing, Ethereum is trading around $1,950, down nearly 14% over the last week.

Featured image from Dall-E, chart from TradingView.com