Ethereum is experiencing a significant decline in high-value transactions as whale activity has dropped by 63.8% since February 25th, according to on-chain data analysis. Crypto analyst Ali Martinez points out that this decrease in participation from major investors affects market liquidity and contributes to the current price fluctuations of Ethereum (ETH). Large transaction volumes have significantly decreased on the blockchain, indicating both institutional investors and prominent whale holders are less active in the market.
The recent sell-off by large ETH holdings has contributed to a 9% drop in Ethereum’s trading value over the past week, bringing it down to around $1,880. This price decline also impacts its performance relative to Bitcoin, which is currently outperforming Ethereum with an ETH/BTC ratio of 0.022 – a level not seen since December 2020.
The Ethereum network has also witnessed a decrease in market share within the decentralized finance (DeFi) sector. DeFi protocol TVL has fallen from 61.64% in February 2024 to 52.76% currently, highlighting a shift in investor preference towards other blockchain platforms like Solana.
Technical indicators further suggest an ongoing bearish trend for ETH with it trading below its 20-day EMA at $1,963 and its RSI reaching 40.73. The future price direction will likely hinge on whether buying interest returns or if the decline in whale activity continues.