There are always intriguing Ethereum metrics worth keeping tabs on. For example, even though the Ether price keeps rising higher, some holders appear to be cashing out. A decrease in addresses holding over 1,000 ETH is never a good short-term market indicator.

1,000 ETH Club Is Dwindling

It would be beneficial to many people at the current prices if they held 1,000 ETH or more. That would represent a market value of nearly $4 million, an amount most people can only dream of. However, plenty of network addresses hold such a balance today, even if the numbers are dwindling in recent weeks. A price increase will often trigger such an effect, either short-term or long-term. 

Per Glassnode, there is now a one-month low for Ethereum addresses holding 1,000 ETH or more. Such a dip will not matter too much to most people, as a one-month low can occur for various reasons. However, it seems the trend started gaining momentum as soon as the Ether price moved up, which is always a bit problematic. 

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Source: Glassnode

The metric indicates a lot of whales may be cashing out Ethereum. However, there is no indication all – or any – of these addresses have sent funds to an exchange or other trading platform. Some may decide to stay for ETH 20, whereas others diversify a portfolio by converting Ether to other crypto assets and tokens. Additionally, some might be investing in NFTs or DeFi. 

While the 1,000 ETH address club keeps dwindling, the momentum can still turn around. Due to the recent price momentum, owning Ether in one’s portfolio has become more appealing. Even with the network burning ETH for most transactions these days, plenty of Ether are still in circulation. Therefore, stacking 1,000 ETH or more is not impossible if one has the money to spend. 

Addresses In Profit Spike

It is normal for traders to take profit when the momentum works in their favor. Gassnode confirms the number of ETH addresses in profit is now at an all-time high of nearly 62 million. That may be another explanation for the 1,000 ETH club decreasing, as people may be moving smaller amounts across different wallets for various reasons.

Source: Glassnode

However, when more addresses are in profit, it is plausible to assume some holders will cash out [part of] their holdings. Cryptocurrency markets mainly serve speculative purposes for the majority of investors. That narrative may not change any time soon, even if the underpinning technology is very impressive.