Ethereum Retail Traders Exit as ETH Price Faces Challenges at $1.6K

Ether has encountered a difficult phase regarding its price performance since the beginning of August, falling below the $1,800 threshold. The trend has consistently shown a downward movement on long-term price charts, making it challenging for buyers to alter this direction.

Consequently, due to this intensified bearish market structure, retail traders of Ether seem to be withdrawing.

• As per Glassnode’s recent alert, the number of Ether addresses holding more than 1 ETH has seen a notable decline.
• On September 25th, the count of these holder addresses within this group reached 1.74 million, marking a three-month low.
• This indicated a diminishing interest from retail investors in wallets with relatively small Ether holdings as market conditions led them to lessen their exposure to the cryptocurrency.
• Simultaneously, another group of retail holders – those with over 10 ETH – also experienced a similar downturn, hitting a three-month low of 347.8k.
• The tally of addresses holding 0.1 ETH also fell to a five-month low of 5.12 million.
• This significant trend among smaller Ether addresses may further imply a lack of confidence in the altcoin’s short-term outlook despite slight indications of opportunity for traders.
• Moreover, Ether’s transaction volume (7d MA) has decreased to $56.13 million, its lowest level in eight months.
• The average transaction fee on the Ethereum network has also dropped to its lowest point this year, coinciding with a reduction in on-chain activity.
• It is important to note that this decline occurs as the supply of ETH has reverted to an inflationary phase.

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