Although the entire market is facing a downtrend along with Ethereum, the holders of this altcoin king are surprisingly better positioned when compared to other coins in the market.
Are Ethereum Investors Safe?
Really they are. The reason behind this is Ethereum’s quick recovery after a price drop. Other altcoins often fail to recover significantly from a drop in price, while Ethereum on the other hand has seen prices fall on the upside.
Thus, technically, Ethereum is mostly in a bull run in the meantime, but broader market signals cause the coin to regularly register red candles.
Ethereum Price Action | Source: TradingView – AMBCrypto
This is why despite a loss of almost 33% since the all-time high, less than 20% of all Ethereum investors have seen any form of loss.
Less than 20% of Ethereum Investors Lose | Source: Intotheblock – AMBCrypto
In such an uncertain market, investors must hold their assets for as long as possible and find a suitable exit, and that is also the case with Ethereum.
But one observation that sets Ethereum investors apart from other crypto holders is that their HODLing sentiment is not recent.
Since July, the speed of the network has dropped, which indicates that the ETH conversion rate in hand has decreased significantly. The fact of HODLing in these 6 months is also verified by the increase of 5 million addresses of medium term holders (1 month – 12 months).
Ethereum Speed | Source: Santiment – AMBCrypto
But now that Ethereum is trading at a 4-month low of $3,221, there will be many potential investors looking to buy in and enter the market as soon as possible.
It is important for them to exercise caution as Ethereum’s on-chain indicators are currently slightly down.
The HODLing sentiment has led to a decrease in on-chain volume, which results in increased network value relative to low transaction value. In addition, the market value of altcoins is also at a 7-month low.
Ethereum Market Value | Source: Santiment – AMBCrypto
Therefore, once there are positive signs of a recovery, investors can jump into “wait and see” which seems to be the most appropriate strategy.