Ethereum [ETH] is sending mixed signals.
Some mid-size whales are trimming their holdings, while the biggest players barely care. Yet despite ETH trading at elevated valuations for years, more people continue to hold it… and less ETH sits on exchanges.
Are investors seeing Ethereum through a different, longer-term lens?
Mid-size whales took profit at the top
Ethereum’s accumulation heatmap shows that the 1-10K ETH cohort was the first to sell into strength, and they did it right near the price top.
These mid-size whales sold heavily during the peak, capturing profits while the market was still celebrating new highs. What’s more, is that they haven’t stopped.
Source: Alphractal
Selling from this group continues, keeping pressure on ETH even as sentiment remains upbeat.
In contrast, the largest holders (wallets with more than 10K ETH) are far more neutral. They’re neither panic-selling nor aggressively buying. This might be why ETH’s rally has struggled to find smooth momentum.
Exchange supply keeps falling
ETH held on CEXs has been dropping, falling from around 14.5 million ETH in late July to nearly 12.5 million ETH at press time.
Investors (both retail and institutional) are moving coins off exchanges and into long-term storage. So far, consistent outflows reduce immediate sell pressure and prove confidence.
Source: X
Even as mid-size whales continue taking profits, the broader trend shows fewer holders keeping ETH available to sell.
Are investors valuing ETH differently?
Despite Ethereum trading at a fully diluted P/S ratio above 100x for years, levels most dot‑com companies never sustained, the number of holders continues to rise.
Charts reveal Ethereum’s P/S repeatedly spiking above 1,000x, at times approaching 3,000x, while total addresses have now surpassed 250 million.
Source: X
Holders aren’t treating ETH like a revenue-driven tech stock. Instead, many appear to value it as a long-term settlement asset.
The idea is probably that its utility, network effects, and role in shaping digital money outweigh its short-term financial ratios.
Adding to the bullish outlook, Bitmine’s Tom Lee says Ethereum at $3K is grossly undervalued. He mentioned the probability of ETH reaching $12K based on its 8-year average, with upside scenarios of $22K and even $62K per ETH.
This is the long-term potential that many investors seem to already price in.
Final Thoughts
- ETH supply on exchanges is dropping to 12.5 million.
- With Tom Lee projecting $12K-$62K upside, Ethereum’s long-term growth potential remains massive.
Source: https://ambcrypto.com/ethereum-supply-drops-yet-tom-lee-insists-3k-is-still-undervalued/