According to a recent analysis shared by on-chain data provider CryptoQuant, Ethereum’s current market dynamics are revealing a notable absence of retail investors — a factor that might signal the rally is far from over.
Historically, Ethereum has shown clear patterns during bull markets. In the 2021 cycle, retail trading frequency spiked significantly every time ETH reached a local top. Retail traders, often seen entering late, typically marked the final leg of big price moves. But this time around, the setup looks different.
Retail Activity Remains Muted
Despite Bitcoin’s impressive surge from $16,000 to over $111,000, Ethereum hasn’t matched the traditional altcoin outperformance narrative. CryptoQuant notes a brief rise in retail interest in December 2024 — marked visually by green dots in their data models — but this momentum was quickly stifled by market jitters stemming from President Trump’s aggressive tariff policies.
As risk appetite dipped across financial markets, Ethereum’s retail trading activity cooled off just as it was beginning to build.
That drop-off suggests retail investors are still sitting on the sidelines, potentially waiting for clearer signals or more favorable conditions before reentering the market.
What It Means for Ethereum’s Price Action
CryptoQuant analysts suggest that this subdued retail presence might be bullish in disguise. In many past cycles, retail buyers entered late — meaning their absence could point to ETH still being in the early stages of a broader rally. With retail yet to jump in, there could be “unpriced upside” left in Ethereum.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ethereums-retail-gap-suggests-more-upside/