Ethereum’s Long-Term Investors Increase Market Activity
In a recent analysis shared by the on-chain analytics platform Glassnode, it has been observed that Ethereum investors with a holding period exceeding three years have intensified their selling activities. This surge in market activity has reached levels that have not been witnessed since 2021.
Veteran Ethereum Holders Amplify Their Market Presence
Glassnode’s new insights reveal that Ethereum holders within the 3 to 10-year holding bracket have significantly increased their spending. This particular group is a subset of what’s termed the long-term holder (LTH) cohort, defined by a minimum holding period of 155 days.
Advertisement Banner
Typically, the longer investors retain their Ethereum assets, the less likely they are to liquidate them. Hence, LTHs are often regarded as having “diamond hands.” The 3 to 10-year holders, being some of the most seasoned within the LTH category, represent a steadfast faction of HODLers. Observing their behavior is crucial, as their decision to sell might indicate shifting market dynamics compelling even the most resolute investors to reconsider their strategies.
The Spent Volume by Age indicator is a valuable tool for monitoring this group’s activities. This metric tracks transactions across different investor age bands on the blockchain. Glassnode has shared a chart illustrating the 90-day moving average (MA) trend for Ethereum over recent years, highlighting this phenomenon.
Current Trends and Historical Context
As depicted in the graph, there has been a remarkable increase in the Spent Volume by Age for the 3 to 10-year holders since late August. Currently, the 90-day MA exceeds 45,000 ETH, translating to these seasoned investors selling tokens with a daily value of approximately $139 million.
According to Glassnode, “This marks the highest spending level by seasoned investors since February 2021.” The same cohort engaged in similar distribution levels during the bull run peak later that year. This recent wave of selling has contributed to a bearish trend in Ethereum’s price. It remains uncertain whether this downturn will lead to another bear market, akin to late 2021, or if the market will rally as it did in February 2021.
Other Influences on Ethereum’s Market Performance
Long-term holder selling isn’t the sole factor affecting Ethereum’s price dynamics. Recent data from CryptoQuant analyst Maartunn highlights significant outflows from Ethereum spot exchange-traded funds (ETFs) over the past month.
As illustrated in the chart, Ethereum spot ETFs have experienced a 30-day net outflow of $1.21 billion. Bitcoin has faced even greater challenges, with net outflows totaling $2.80 billion.
Ethereum’s Current Price Status
At the time of writing, Ethereum is valued at approximately $3,100, reflecting a decline of over 4% in the past week.
Commitment to Editorial Excellence
Our Editorial Process is dedicated to producing content that is well-researched, accurate, and unbiased. We adhere to stringent sourcing standards, with each piece undergoing meticulous review by our expert team. This rigorous approach ensures our readers receive content of the highest integrity, relevance, and value.
