Ethereum’s Long-Term Strength Remains Intact Amid Market Fragmentation and ETF Inflows
The post Ethereum’s Long-Term Strength Remains Intact Amid Market Fragmentation and ETF Inflows appeared on BitcoinEthereumNews.com.
The long-term holders of Ethereum appear to be quite confident, even if the short-term is filled with uncertainties. These traders have been holding ETH for an average of 2.4 years. So, they seem pretty committed to the asset’s long-term potential. Nonetheless, a couple of recent trends suggest something of a shift. And what is this possible shift signaling? It seems to indicate that L2 scaling solutions and alternative L1 blockchains are capturing more attention that Ethereum was previously getting. And that is soaking some of the growth juice (or, more likely, the “growth promise juice”) out of Ethereum. With an average holding time of 2.4 years, $ETH signals strong confidence from long-term holders. However, a lack of new short-term participants and the emergence of L2s and alternative L1s are fragmenting attention, leaving growth potential somewhat tempered. pic.twitter.com/5QXAxpGap7 — IntoTheBlock (@intotheblock) January 31, 2025 Even with structural alterations in the crypto ecosystem, Ethereum could be gearing up for a significant market turnaround. Even though the price of ETH has been taking a nosedive, the buying volume has been pumping up and looking really good, almost like a rebound is on the way. This is precisely the kind of price-to-volume action we saw in May 2024, when Ethereum was facing a comparable pullback before breakfasting on substantial price gains. If history doesn’t flake out on us, it looks like a deliciously substantial price gain for ETH could be on the breakfast menu again. Long-Term Holders Remain Unshaken as Short-Term Speculation Slows Ethereum has always had a committed base of holders, but now, the landscape of its dominance is changing. The average holding time of its 2.4-year loyalists highlights their faith in its future growth and current utility. Ethereum was trading at over $1,600 when this report was published, but its current price…
Filed under: News - @ February 3, 2025 6:24 am