Large investors sold most of their holdings; however, buyback might be closer than you would expect
According to the most recent Sentiment data, large Ethereum investors are actively giving up their stake and have already sold over $4.2 billion in the past five weeks. Such huge selling pressure could be the reason behind 25% price drop We saw in mid-September.
These key stakeholders were the main fuel for ETH on the market, according to the movement of the asset prior to the 25% correction. The activity of those stakeholders foreshadowed the price performance of Ethereum, as its price has been in the uptrend, while the same group of investors has been accumulating instead of redistributing coins.
According to the supply of addresses ranging from 100 to 1 million ETH, whales have dropped more assets than they deposited in August and early September.
Positive side of things
Since whales and sharks now own fewer coins than they did while ETH was trading around $1,400, they will most likely push the price of the asset higher than we saw back in September, since large investors tend to buy back the assets they have previously sold.
Another growth factor is the increasing deflation of the asset, which increased significantly after the implementation of merge updates and the creation of a deflationary network for Ethereum. As predicted, Ethereum is almost at its peak in terms of network issuance.
A high burning rate and low issuance are, unfortunately, not the panacea for the permanent bull market, and use cases with high network revenue are the only factors that push the price of the asset up.
