As the majority of the cryptocurrency sector continues to move in a bearish pattern, its second-largest asset by market capitalization – Ethereum (ETH) – has been under the increased pressure of its key stakeholders’ behavior over the past five weeks.
Specifically, Ethereum’s shark and whale addresses – defined as those holding between 100 and 1 million in ETH – have dumped 3.3 million ETH over the past five weeks, according to the technical analysis (TA) by the on-chain market intelligence platform Santiment published in a tweet on October 16.
In other words, more than $4.3 billion in Ethereum has been collectively dumped by the whale and shark addresses in the past five weeks, considering the decentralized finance (DeFi) asset’s price at press time.
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Whales’ accumulation and dumping controlling the price
Such dramatic behavior of a token’s largest investors typically has massive effects. Indeed, as the major holders of Ethereum were getting rid of their holdings, the price of Ethereum has decreased by more than 26% – from $1,773 on September 10 to $1,310 on October 17.
In addition, Santiment noted:
“The asset’s price vs. Bitcoin has ebbed and flowed based on behavior of these key stakeholders.”
As it happens, the ratio between Ethereum and Bitcoin (BTC) dropped by 12.7% as the whales and sharks collectively dropped 3.3 million ETH. Earlier, when these addresses were in the accumulating mode, the ETH/BTC ratio rose by 43.4% over the period of eight weeks.
At press time, Ethereum was trading at $1,310, up 1.87% in the past 24 hours, as well as 0.23% over the previous week, according to the data retrieved from CoinMarketCap on October 17. Its market cap stood at $160.62 billion.
Meanwhile, Ethereum has managed to add close to 90,000 unique addresses per day since its historic Merge upgrade that officially marked the network’s transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) validation algorithm, as Finbold reported.
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