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

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.