Ethereum is concentrated in the hands of whales. Does this threaten the stability of the ETH price?

Ethereum continues to remain below the $2,000 mark, which it has been unable to surpass since March 28. The bearish trend persists in both technical and on-chain indicators.

Despite attempts at stabilization, recent data shows that the concentration of Ethereum among large holders is increasing, while trend indicators remain weak. Meanwhile, retail and average investors are gradually giving up positions, which enhances the influence of large players. This redistribution of power could make ETH more vulnerable to sharp corrections if market sentiments change.

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Whale ETH holdings have reached a 9-year high, raising concerns about centralization

Ethereum’s share held by whales – wallets that control more than 1% of the total supply – has reached its highest level since 2015 at 46%.

This is a significant change, as whales surpassed retail investors on March 10 and have continued to increase their advantage since then. At the same time, addresses holding between 0.1% and 1% of the supply, and retail wallets holding less than 0.1%, have reduced their share in ETH.

The growth from 43% to 46% in just a few months highlights the accumulation trend among the largest holders. This indicates a growing concentration of Ethereum in fewer hands.

Whale actions can significantly impact the price due to the volume of assets they manage. Some may view the increase in whale share as a sign of confidence. However, it also increases the risk of sudden volatility if large holders start selling.

With the decrease in participation of retail investors, the market may become more fragile and vulnerable to sharp, unexpected price fluctuations caused by a few dominant players.

Whales holding between 1,000 and 100,000 ETH now control $59 billion

The analysis of ETH distribution shows alarming signs of increasing concentration. First, let’s exclude addresses with more than 100,000 ETH, which are typically associated with centralized exchanges. Whale addresses holding between 1,000 and 100,000 ETH now control about $59 billion in ETH. This is approximately 25.5% of the circulating supply.

This group consistently accumulates more assets, which strengthens the shift of power towards large players operating off-exchanges but having a significant influence on the market.

Some may see this trend as a strategic positioning of confident hodlers. However, it also creates significant risk for Ethereum.

More than a quarter of all supplies are concentrated among large investors. Any coordinated or panic selling can lead to a sharp drop in price, especially with a weakening of retail investor participation.

Instead of long-term stability, such concentration may make the ETH market more vulnerable and susceptible to volatility if these holders decide to move their funds into other assets.

The bearish EMA structure keeps Ethereum under pressure

EMA lines continue to give bearish signals. Short-term averages remain below long-term MAs, indicating the persistence of bearish momentum.

If a new correction occurs, Ethereum may first test the support at $1,535. A breakout of this level could lead to a drop to $1,412 or even $1,385.

If these support levels do not hold, the token may approach the mark of $1,000. Some analysts consider it a possible target in the event of a prolonged market correction.

Nevertheless, a bullish reversal is still possible. If buyers activate and ETH regains short-term momentum, it could reach resistance at $1,669. A breakout of this level will be an important signal and could push the price to $1,749 and even to $1,954.

However, the moving averages are still pointed downwards. Therefore, the bulls need to prove that the momentum has truly changed in their favor.

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