A significant drop in interest surrounding Ethereum (ETH) has raised concerns among investors and market analysts alike, according to a recent report from CryptoQuant. The report points to the fact that addresses with balances over 100,000 ETH are mostly inactive, signaling the withdrawal approach being adopted by some of the ecosystem's major players.
Analysts are concerned about inactivity among large holders and selling by small investors
Additionally, retail addresses, which make up the majority of individual and smaller investors, appear to be significantly more reluctant in their purchasing behavior. Addresses holding 10,000-100,000 ETH are still willing to buy, but their frequency of purchases has dropped significantly. This hesitation is indicative of a more general timidity currently seen in the market.
Meanwhile, addresses holding between 100 and 1,000 ETH have been steadily selling off their tokens. This ongoing selling process is an unfavorable sign that small holders are losing confidence in cryptocurrencies, which could further reduce overall interest in the cryptocurrency market. This trend continues to suggest that Ethereum markets may decline further as large holders cease activity and small holders try to limit their losses.
When Ethereum spot ETF trading began in the U.S., many traders bought ETH, hoping that it would rise just like BTC did after the spot ETF was approved. But as time goes on, those traders are selling due to disappointment.
Market changes dampen investor commitment to Ethereum
Another factor that has led to this development is the decline in ETH's market power in the cryptocurrency market. If we shift our focus to a comparison between Ethereum and other altcoins, we can see that this cryptocurrency is also losing ground. This decline in power could lead investors to become more cautious and less involved in the ETH market.
Market factors play a key role in predicting the future direction of Ethereum. Lack of activity from large holders and selling pressure from small investors could pose a major threat to ETH’s valuation going forward.
Finally, according to data analysis by CryptoQuant, interest in Ethereum has been steadily declining. In this regard, it is important for investors to pay close attention to these changes, as they could have a significant impact on Ethereum's future and its status among other cryptocurrencies.
