Ethereum, as the world’s second-biggest cryptocurrency by market cap, is a very intriguing project to keep an eye on. Its metrics can help determine whether the price may go up or down soon. Despite the number of whales holding over 100 ETH decreasing, exchanges aren’t noting a higher inflow.

Fewer Ethereum Whales Remain

Unlike Bitcoin, which is considered to be a store of value, Ethereum caters to an entirely different group of people. It is a currency for those who want to actively transact on the network and interact with decentralized applications or decentralized finance solutions. Moreover, the introduction of Ethereum 2.0 staking has attracted a lot of positive attention from those who aim to support the network for the long term. 

Similar to Bitcoin, Ethereum has seen its fair share of whales. A whale is best described as someone who owns a substantial amount of ETH. In this particular metric, let’s assume a whale is someone who holds 100 Ether or more, valued at over $170,000 today. For some reason, the number of whales is decreasing rapidly, culminating in a 19-month low.


BlocDesk Ethereum Whales
Source: Glassnode

It is not entirely surprising to see such a steep decline in Ethereum whales either. The trend has kicked in since late 2020 and only seems to accelerate over time. While the Ethereum 2.0 staking is undoubtedly a contributing factor to this decline, some other factors may be in play as well.

Today, there are still 45,546 Ethereum whales on the market. They represent at least 4.54 million ETH in funds, which is a minor fraction of the circulating supply today. Contrary to what some may think, the decrease in whales will not impact the value of Ethereum right away. 

ETH Exchange Inflow Dips

It is always intriguing to keep tabs on how the exchange inflow for specific cryptocurrencies evolves. When prices rise or fall sharply, people are often a stronger inflow looking to liquidate their positions. Considering how fewer addresses are holding 100 ETH, it seems that funds will not go to exchanges after all. More specifically, that is not happening yet, although the situation can always change.

BlocDesk ETH Exchange Inflow
Source: Glassnode

Speaking of which, the Ethereum exchange inflow notes a monthly low as well. With a 7D MA of $24.768 million, something appears to be brewing behind the scenes. It is difficult to pinpoint where all of the funds are going today. More staking deposits for Ethereum 2.0 seem plausible yet may not help explain all of these differences at once.

How this situation will evolve is anyone’s guess at this point. Cryptocurrencies find themselves in a relatively awkward phase despite the growing institutional interest in these assets. However, there is also a lot of negative market pressure that may keep prices at an uneven level for some time to come.