• On-chain data show that smart wallets holding over 100,000 ETH are expanding their holdings to a 9-week high.
• Ethereum trades near $2,000 on Friday, extending its decline under broader market pressure.
• Institutional outflows and low network activity risk eroding Ethereum's demand.

Ethereum (ETH) is under intense selling pressure, hovering around $2,000 at press time on Friday after three consecutive days of losses. Institutional outflows and a decline in active addresses support the “bearish rally” in the major altcoin amid a broader decline in the cryptocurrency market. Still, a group of elite holders with over 100,000 ETH tokens is buying the dip at a record pace, risking being left holding the bag. 

Elites are doubling down on Ethereum despite multiple downside risks

Ethereum is down 10% so far this month, extending its third consecutive bearish week. The major altcoin is losing retail and institutional interest, mirroring Bitcoin’s (BTC) dip to $73,000 as the US-Iran ceasefire extension dwindles. 

On the institutional side, the Ethereum-focused Exchange Traded Funds (ETFs) have recorded 13 consecutive days of outflows totaling $634.65 million, reducing their value of total assets under management to $11.30 billion from $13.85 billion. 

Similarly, network activity is declining on Ethereum, as previously reported by FXStreet. The active addresses count has dropped to roughly 400,000, from over 550,000 in mid-April, suggesting weakened on-chain engagement. 

Despite clouds gathering over Ethereum, a group of smart buyers is accumulating ETH at a discount. Santiment data shows that wallets holding over 100,000 ETH have increased their holdings to 17.43 million ETH, the highest in the last nine weeks. In other words, the cohort accounts for over 22% of the total ETH supply. 

Historically, the cohort with over 100,000 ETH has shown consistent offloading of their holdings, with minor buybacks along the way. Considering the broader trend, the cohort is likely to trim its holdings, but it offers a short-term bullish outlook.