Ethereum Whales Facing Decline in Holdings as ETH Price Dips Beneath Key Support
Recent analysis shows a steady decline in Ethereum whale holdings coinciding with the drop in ETH price, raising concerns among investors.
On-chain data indicates troubling times for Ethereum, as its whale holdings have been decreasing steadily since the start of the year, as reported by analyst Ali Martinez. Meanwhile, the price of ETH has dropped significantly over the past week, now struggling beneath crucial support levels.
Whales and ETF Investors Shrink Holdings
Martinez highlights that while whale holdings initially rose to 31 million tokens at the beginning of the year, they have fallen to just over 29 million as of January 23, leading to a redistribution of 1.63 million ETH since the year started.
Additionally, the situation with spot Ethereum ETFs is alarming. After garnering over $400 million by January 6, they lost a similar amount within days. By January’s end, net inflows dropped to $12.30 billion, the least since mid-August.
Ethereum ETF Net Flows
(Source: SoSoValue)
ETH Price Drops Further
Despite finishing 2025 on a positive note, Ethereum’s price has fallen below the crucial $3,000 support mark. Analyst Ali Martinez warns that the asset needs to climb back above $3,085 for a significant bullish catalyst. However, it currently remains far below this level.
Moreover, Merlijn The Trader pointed out the relevance of the 200-day moving average, which is around $3,300. Every prior rejection at this level has led to significant price drops.
ETHEREUM IS STILL STRUGGLING BELOW THE 200D MA. Every rejection at the MA200 has triggered a sharp selloff: Dump 1: -27% Dump 2: -21% Dump 3: -14% (so far) If history repeats, another ~20% reset could occur.
