Leading altcoin Ethereum has struggled over the past week, shedding nearly 10% of its value as bearish sentiment grips the market.
On-chain data shows that the top investors have reduced their holdings as the coin battles a lackluster performance. With this trend, ETH faces mounting headwinds that could drag its price below the critical $4,000 level.
SponsoredTop Investors Dump ETH, Raising Short-Term Breakdown Fears
Data from Nansen shows that the ETH balance of the top 100 largest wallets has dipped by 10% in the past week.
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According to the blockchain analytics platform, this metric tracks the token balances of the 100 largest crypto wallets. These holders control a significant share of an asset’s circulating supply, so changes in their balances are usually markers of sentiment shift among big players.
The 10% decline in ETH’s top wallet balance confirms that these holders have been offloading the coin into the market over the past week. Such a move is a strong bearish signal, adding downward pressure on ETH’s price.
Furthermore, according to the on-chain data provider, ETH’s whale activity has also declined, exacerbating the likelihood of a dip below $4,000.
SponsoredOver the past week, whale wallets with coins worth more than $1 million have reduced their ETH holdings by over 200%. As of this writing, this cohort of ETH investors holds 19,577 coins valued at $66.20 million at current market prices.
A decline in whale holdings like this usually ripples into broader market sentiment. Retail traders closely track whale activity as a signal of confidence. So, when large investors begin to offload their assets, smaller holders may follow suit out of caution.
This can amplify ETH’s selling pressure and push it further down in the near-term.
Heavy Sell-Offs Test Market Resilience
ETH currently trades at $4,196, with rising sell-offs from large investors driving fears of deeper losses. If the selling pressure continues, ETH could break below the $4,000 level and test support around $3,875.
On the other hand, fresh demand entering the market to absorb this wave of supply could stabilize the coin’s price.
Such a shift could trigger a rebound, putting ETH back on track toward $4,497.
