Ethereum Retail Traders Reduce Holdings as ETH Price Declines
Ether has been experiencing a difficult period in terms of price performance, with a consistent downward trend since early August. This has made it challenging for buyers to reverse the course of the cryptocurrency.
As a result, retail traders of Ether have been reducing their holdings. According to Glassnode, the number of addresses holding more than 1 ETH has significantly declined. On September 25th, this cohort reached a three-month low of 1.74 million addresses. Similarly, the number of addresses holding over 10 ETH also hit a three-month low of 347.8k.
This decrease in small Ether addresses suggests a lack of confidence among retail investors in the altcoin’s short-term prospects, despite some minor opportunities for traders. Additionally, Ethereum’s transaction volume and average transaction fee have both dropped to their lowest points in months.
These trends coincide with an inflationary phase for ETH’s supply.
Hot Take: Ethereum Retail Traders Losing Confidence Amidst Price Struggles
Ethereum’s price decline below $1,800 has led to retail traders reducing their holdings, reflecting a lack of confidence in the cryptocurrency’s short-term prospects. The decrease in addresses holding Ether and the drop in transaction volume and fees indicate a bearish sentiment among investors. While there may be some minor opportunities for traders, the overall trend suggests caution. As ETH enters an inflationary phase, it remains to be seen whether retail traders will regain confidence or continue to reduce their exposure to the crypto asset.
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