- Over $1 billion worth of Ethereum has been withdrawn from exchange wallets over the past three weeks.
- ETH holders have consistently added Ether between May 8 and May 31.
- Whales have shed their Ethereum holdings and redistributed to retail traders in May, a retail-driven ETH price recovery is likely.
Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.
Also read: China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies
Ethereum holdings redistributed from whales to retail traders
During the recent pullback in ETH price, an interesting phenomenon occurred. While Ethereum supply on exchanges declined by $1.04 billion between May 8 and 31, Ether holdings of large wallet investors dropped.
Whales shed their Ethereum holdings and retail traders with a balance of (0.001 Ether to 1 Ether) scooped up more ETH throughout May. Based on data from crypto intelligence tracker Santiment, ETH holders in four segments have increased their holdings of the altcoin in the past three weeks.
%20[16.36.46,%2031%20May,%202023]-638211327481928846.png)
Ethereum holdings across four segments
The following chart shows the decline in ETH supply on exchanges:
%20[16.36.29,%2031%20May,%202023]-638211327773496274.png)
Ethereum supply on exchanges
ETH supply dropped from 12.79 million on May 8 to 12.23 million as of Wednesday. Nearly $1.04 billion in Ether was pulled out of exchanges.
It is important to note that the decline in Ether supply on exchanges, alongside retail accumulation, signals a shift in the catalyst driving ETH price rally. Typically, whale accumulation and activity catalyze recovery in the altcoin. During this cycle, retail traders have the opportunity to fuel demand for the largest altcoin in the crypto ecosystem and aid its recovery.
At press time, Ethereum is exchanging hands at $1,868.82, up 4% over the past month.
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