Ethereum investors with holding periods of more than three years have increased sales to levels not seen since 2021, according to on-chain data.
Seasoned Ethereum Holders Are Increasing Distribution
As on-chain analytics firm Glassnode explains in a new post about These investors belong to a broader group known as the long-term holder (LTH) cohort, which has a holding period of 155 days.
Statistically, the longer an investor holds a coin, the less likely they are to sell it at any point. Therefore, LTH can be considered as a whole a diamond hand.
ETH investors aged 3-10 years are old even by LTH standards, so we can assume they include the most loyal HODLers. Given this status of the cohort, investor behavior may be worth noting. That’s because selling from them could be a sign that market conditions are causing even the most seasoned investors to exit.
One way to track the behavior of groups is to use consumption by age metrics, which track transactions performed on blockchain by different age groups of investors. Below is a chart of metrics shared by Glassnode that shows the 90-day moving average (MA) trend of Ethereum over the past few years.
The value of the metric appears to have shot up in recent months | Source: Glassnode on X
As you can see in the graph, there has been a surge in spending by age among investors with holding periods of 3 to 10 years since the end of August. The 90-day MA is currently above 45,000 ETH. This means market veterans are selling $139 million worth of tokens every day.
“This is the highest level of spending by seasoned investors since February 2021,” the analytics firm said. In addition to the February sell-off, the group engaged in roughly the same level of circulation with Bull Run Top in the second half of the year.
With the arrival of the latest selling wave, Ethereum has been witnessing bearish momentum. It remains to be seen whether these price declines will lead to another bear market like the one at the end of 2021, or whether the uptrend will regain its footing like it did in February 2021.
The LTH selloff is not the only bearish factor that ETH has had to deal with recently. According to a chart shared by CryptoQuant community analyst Maartunn, there has been significant outflow from the Ethereum spot exchange-traded fund (ETF) over the past month.
The trend in the spot ETF netflows for Ethereum and Bitcoin | Source: @JA_Maartun on X
From the chart above, it is clear that the Ethereum spot ETF is experiencing negative net outflows of $1.21 billion over 30 days, while Bitcoin has fared even worse with net outflows of $2.8 billion.
ETH price
As of this writing, Ethereum is trading at around $3,100, down more than 4% in the past week.
Looks like the price of the coin has plunged during the past day | Source: ETHUSDT on TradingView
Dall-E, Glassnode.com, featured image from CryptoQuant.com, chart from TradingView.com
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