ETH Market Shows Strength Despite Whale Selling Pressure
Some mid-size whales are trimming their positions, while the biggest players seem largely unfazed. Yet despite ETH trading at elevated valuations for years, a growing number of individuals persist in holding it… A diminished quantity of ETH is currently held on exchanges. Ethereum’s accumulation heatmap reveals that the 1-10K ETH cohort was the first to seize market strength, executing their sales right around the peak price. These mid-size whales capitalized on substantial sales during the market’s peak, locking in profits as the market celebrated new highs. Furthermore, their actions have continued unabated. Selling activity from this group continues, exerting pressure on ETH even amid a generally positive sentiment in the market.
On the other hand, the largest holders, specifically those wallets containing over 10K ETH, display a notably more neutral position. Market participants are neither engaging in panic-selling nor pursuing aggressive buying strategies. This may shed light on the obstacles ETH’s rally has encountered in achieving steady momentum. ETH held on centralized exchanges has experienced a drop, falling from around 14.5 million ETH in late July to close to 12.5 million ETH as of the latest report. Investors, including both retail and institutional players, are moving coins from exchanges into long-term storage options. Currently, consistent outflows ease short-term selling pressure and reflect a sense of confidence.
Despite mid-size whales cashing out, the overall trend shows a decrease in the number of holders who are keeping ETH on the market. Despite Ethereum’s fully diluted P/S ratio consistently surpassing 100x for years—a benchmark that many dot-com companies struggled to uphold—the number of holders keeps rising. Charts reveal that Ethereum’s P/S has consistently soared past 1,000x, at times approaching 3,000x, with total addresses surpassing 250 million.
Holders are viewing ETH through a lens that diverges from the typical revenue-driven tech stock perspective. Instead, many appear to view it as a long-term settlement asset. The prevailing idea is that its utility, network effects, and role in shaping digital currency outweigh its short-term financial indicators. In a bullish evaluation, Bitmine’s Tom Lee claims that Ethereum priced at $3K is significantly undervalued. He noted the probability of ETH reaching $12K, citing its 8-year average, with possible scenarios indicating values of $22K and even $62K per ETH. Numerous investors seem to have already accounted for this enduring potential.
