ETH Holdings Decline of Whales Ahead of Shanghai Upgrade

The Ethereum whales hold between 10,000 to 1,000,000 ETH coins. However, Ethereum ETH holdings of whales see a decline ahead of the Shanghai Upgrade.

KEY TAKEAWAYS

• There is a decline in Ethereum’s holding of whales ahead of the Shanghai upgrade
• A recent analysis of certain metrics indicates a difficulty in ETH price to grow.

Santiment, the on-chain data provider, reported a decline in the ETH holdings of whales to 1298 ETH. The previous month the whale’s holdings were 1313 ETH coins.

This indicates that the ETH Whales must be selling off their holdings due to the FUD surrounding the upcoming Shanghai upgrade. Which is set to take place on 12th April. Though whales and some other factors can heavily influence ETH, such as market volatility, regulatory changes, or simply a shift in investment strategy.

If one group of whales is selling its ETH holdings. there is this second group that is still holding on to its Ethereum and is even buying more. This group owns about 28.87% of all the Ethereum that exists.

Can you be certain about a rise in ETH price?

Two main indicators provide insight into the activity and behavior of participants on blockchain networks. These are the Mean coin age and Mean dollar invested metrics.

An increase in an asset’s Mean Coin Age means that the average age of all the coins on the blockchain is rising. While on the other hand, when there is an increase in an asset’s Mean Dollar Invested Age, it means that the average age of all the coins on the blockchain is increasing, weighted by the purchase price.

The former suggests that the tokens are being held for long enough. This indicates network-wide accumulation. While the latter says that the holders are not making any further transactions after they purchased their coins at a higher price.

Thus a drop in both Mean Coin Age and Mean Dollar Invested Age metrics on 22 March for Ethereum suggests an increase in the movement of tokens on the Ethereum network. As well as a decline in the activity of high-value investors. Indicating market uncertainty or a shift in investor sentiment toward the asset.

However, a consistent increase in the Mean Dollar Invested Age for a longer period can cause the price of tokens to get stagnant. A recent drop in both of these metrics on 22 March indicated a difficulty for price to grow.

Moreover, there was also a spike in ETH exchange activity. As per the data from Glassnode, currently, the amount of staked Ethereum is $17.86 million indicating an increase in the past 4 months. Meanwhile, the total number of validators on the ETH network has increased by 4.2%.