Bitrabo Editorial
Recent on-chain data indicates that Ethereum’s whales have been consistently distributing their holdings for the past six months, a trend that poses challenges for ETH’s outlook.
Accumulation Trend Score for Ethereum Signals Distress
Analyst James Van Straten recently highlighted a troubling trend in Ethereum’s Accumulation Trend Score in a new post on X. The Accumulation Trend Score, provided by Glassnode, serves as an indicator to assess whether investors in a specific asset are accumulating or distributing.
This score factors in not just the wallet balance changes of investors but also the size of the entities involved, meaning that larger holders have more influence on the score. A score nearing 1 suggests that large investors are actively accumulating or that a high number of smaller investors are buying. Conversely, a score close to 0 indicates a predominant distribution trend or a lack of accumulation.
Focusing on individual investor groups, these addresses are categorized based on their holdings.
The following chart illustrates the trend of the Accumulation Trend Score for various cohorts within Ethereum over the past year:
The chart reveals that earlier this year, Ethereum’s Accumulation Trend Score displayed shades of blue, indicating some level of accumulation among investors.
After the Bitcoin all-time high in March, however, a massive sell-off began, and the score plummeted into a deep red, nearing zero. Although selling has eased in recent months, the score remains predominantly in the red. Notably, groups holding between 100 to 10,000 BTC, as well as mega whales with over 10,000 BTC, continue to show distribution.
These groups, known as sharks, whales, and mega whales respectively, can significantly sway market dynamics. Their ongoing sell-off over the last six months raises concerns for Ethereum’s prospects.
It seems likely that ETH will struggle to experience a substantial recovery until these cohorts resume accumulation.
Current ETH Price
As of the latest update, Ethereum’s price is approximately $2,400, reflecting a decline of over 7% in the past week.