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Ethereum Retail Traders on the Run as ETH Price Struggles at $1.6K

Chayanika Deka Sep 25, 2023 14:10
Small Ether holder addresses have taken a severe hit as price struggles around $1,570.

Ether has faced a challenging period in terms of price performance since early August, dropping below the $1,800 mark. The trend has consistently exhibited a downward trajectory on longer-term price charts, making it a daunting task for buyers to reverse this course.

As a result of this increased bearish market structure, retail traders of Ether appear to be on the run.

  • According to Glassnode’s latest alert, Ether addresses with above 1 ETH have been on a significant decline.
  • On September 25th, the number of these holder addresses in this cohort had hit 1.74 million, representing a three-month low.
  • This suggested a dwindling appetite of retail investors for wallets with relatively modest Ether holdings as the market conditions prompted them to reduce their exposure to the crypto asset.
  • Meanwhile, another cohort of retail holders – the number of addresses holding over 10 ETH – also met a similar fate, reaching a 3-month low of 347.8k.
  • The number of addresses Holding 0.1 ETH also hit a 5-month low of 5.12 million.
  • Such a pronounced trend among the small Ether addresses could further suggest a lack of confidence in the altcoin’s short-term prospects despite minor hints of opportunity for traders.
  • Additionally, Ether’s transaction volume (7d MA) also dropped to $56.13 million, its lowest in eight months.
  • The Ethereum network’s average transaction fee also declined to its lowest point for the year, coinciding with a decrease in on-chain activity.
  • It’s worth highlighting that this decline occurs as the supply of ETH has shifted back to an inflationary phase.
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Chayanika Deka

Chayanika has been working as financial journalist for five years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin

Tags: Ethereum