The distribution of ETH holdings is becoming increasingly concentrated, with whales holding 71% of the chips. Addresses holding between 1,000 and over 100,000 ETH account for more than 70% in total, indicating that pricing power is primarily controlled by large holders and institutions. The strong stance of long-term holders indeed provides strong support for ETH. This recent decline has hardly affected long-term holdings, suggesting that these large holders have no intention of exiting the market at this time; they may feel that the price range of 2,500-2,600 is still far from their psychological expectations.

On May 9 and May 15, the selling by whales directly pressured the price down, and similar situations have occurred recently, with short-term holdings showing clear profit-taking actions around 2,500-2,600. This is not surprising; large holders who bought in April ran for profits in May, which is quite reasonable, especially for retail investors who tend to sell on rebounds, and some even short on rebounds. Ethereum's recent independent performances have also cost these bears quite a bit.

But those who mix in will eventually have to pay the price. With Trump and Musk falling out, it’s unexpected that aside from Tesla, the crypto market has also taken a hard hit, which is quite strange. Ethereum has also changed its unexpectedly strong style from the past few days and has suddenly become the mainstream cryptocurrency that has fallen the hardest. It’s unclear how many bears got caught on the beach; this wave of decline has taken a toll.

Risks have been accumulating all along, with macro factors continually presenting negative news, such as the risk of recession, declining expectations for interest rate cuts, the recurring trade war, decoupling in education, and turmoil in the trade of rare earths and steel. This has made BTC, after reaching a new high, clearly not very strong, with continuous risks of pullbacks and a more cautious capital environment. With BTC declining, ETH attempted to break through the interference but failed two or three times; it can only be said that the overall market's condition indeed depends on Bitcoin.

If you are a long-term investor, I think you can continue to hold onto ETH; don't let short-term fluctuations scare you.