Although the entire market has faced a downtrend with Ethereum, holders of the altcoin king have surprisingly been in a better position compared to other coins in the market.
Ethereum investors are safe?
Indeed they are. The reason behind this is Ethereum’s quick recovery post a price fall. Other altcoins usually fail to post a substantial recovery after a price fall, Ethereum on the other hand observes a price fall in accordance with the rises.
So, technically Ethereum has mostly been in a rally this whole time, but the broader market indices cause the coin to record red candles frequently.
This is why despite losing almost 33% since its all-time high, less than 20% of all Ethereum investors have seen any kind of loss.
In such an uncertain market, investors are expected to hold onto their assets for as long as they can and find a suitable exit, and this is also the case with Ethereum.
But one observation that puts Ethereum investors apart from other coin holders is that their HODLing sentiment is not recent.
Since July, the speed of the network has decreased, indicating that the speed at which ETH changes hands has significantly decreased. This 6-month HODLing fact is also verified by the increase of 5 million cardholder addresses in the medium term (1 month – 12 months).
But now that Ethereum is trading at its 4-month lowest of $3221, there will be many potential investors looking to buy the dip and enter the market as soon as possible.
It is important for them to be cautious as Ethereum’s on-chain indicators are currently slightly bearish.
The HODLing sentiment has led to reduced on-chain volume which in return led to the network value shooting up against a low transaction value. Additionally, the altcoin’s market value is also at a 7-month low.
Thus, once there is a positive indication of recovery, investors can jump in until then “wait and watch” seems to be the more appropriate strategy.
