Ethereum’s Well Dominance Hits Record High: What’s Next?

Ethereum's whaling dominance is at an all-time high and it's hard to ignore what this means for the future. It is the highest in history so far. While small investors hold less than ever, whales quietly accumulate more ETH. Is this a sign of another bull run or something else?

Whales are under control.

So far, 104 wallets hold more than 100,000 ETH each. This is 57.35% of Ethereum's total supply, the highest level ever recorded. As these giant wallets grow in power, medium-sized investors (those between 100 and 100,000 ETH) now control only 33.46%, the lowest share in history.

Not good for small investors. Wallets with less than 100 ETH hold only 9.19% of the supply. This is their smallest unit since January 2021. The trend has been growing since the end of 2022, when big investors began to aggressively accumulate ETH. Apparently, the whales know something, and they are playing the long game that indicates an increase in Ethereum whale dominance.

History shows that whales move the market.

This isn't the first time whales have shaped the price of Ethereum. In late 2020 and early 2021, similar whale stock levels triggered a massive bull run that sent ETH to new highs. But there is a different direction for this. At the peak of whaling dominance in 2022, a major price adjustment took place.

Whale activity isn't the only thing that happens – it's often a sign. Currently, ETH is sitting at $4,015, with immediate resistance at $4,109. On the 4-hour chart, the nearest 20-day moving average (MA) is at $3,931, and strong support rests at $3,575, supported by the MA 200.

Technical indicators show cautious optimism. The Relative Strength Index (RSI) sits at 58.42, which means ETH is not yet in overbought territory. However, On-Balance (OBV) at -44.94 reflects the level of hesitation among investors.

Money in, money out: the investor divide

A closer look at investor behavior adds more context. According to IntoTheBlock data, 74% of Ethereum owners have kept their assets for more than a year. Short term deposits are classified as follows:

22% bought ETH between 1 month and 12 months ago. 4% are new investors, buying in the last month.

Profitability also paints a bright picture. just now:

94% of investors are profitable. 3% are breaking even. Only 3% are at a loss, mainly because they bought Ethereum at its November 2021 all-time high (ATH) of $4,891.

However, there are 4.27 million addresses with a loss of 1.21 million ETH. Most of these losses occurred when ETH was bought between $4,093 and $4,891—not far from the current price level.

What's next?

So what does all this mean for the average investor? Well, it depends. On the flip side, whales are confident. You are especially buying Ethereum during dips, and this usually indicates long-term optimism. If this trend continues, ETH may rise to the $4,500-$5,000 range.

But there is also danger. When a few wallets hold most of the supply, the market becomes vulnerable. A concerted sale of these whales could cause a sudden drop. ETH's history is one to watch closely as it unfolds.

In any case, the dominance of Ethereum Well is a clear reminder: the big players still have a lot of power in this market.