According to Santiment's latest data, large Ethereum investors are actively reducing their holdings and have sold more than $4.2 billion in the past five weeks. Such huge sales pressure may be the reason behind the 25% price reduction we saw in mid September.
According to the asset change before 25% correction, these key stakeholders are ETH's main fuel in the market. The activities of these stakeholders foreshadow the price performance of Ethereum, because its price has been in an upward trend, while the same group of investors have been accumulating rather than redistributing coins.
According to the supply of addresses holding 100 million to 1 million ether, the asset losses of whales are more than the assets accumulated in August and early September.
Since whales and sharks now have less coins than ETH at about 1400 dollars, they are likely to push the asset price up to the level we saw in September, because large investors tend to buy back the assets they sold before.
Another growth factor is the increasing asset deflation. After the implementation of merger and upgrading and Ethereum becoming a deflation network, asset deflation has increased sharply. It is predicted that the network circulation of Ethereum has almost reached its peak.
Unfortunately, high burn rate and low circulation are not the panacea for a permanent bull market. Use cases with high network income are the only factor driving asset prices up.