[Analysis] "Retail investors exit Ethereum... structural bottom signal"

An analysis says retail investor demand for Ethereum (ETH) has substantially weakened recently.

A CryptoOnchain contributor to CryptoQuant said, "(Ethereum's) number of active sending addresses recently fell to 170,000," adding, "This means retail investors have already exited the market or currently have almost no willingness to trade." CryptoOnchain said, "Historically, retail investor activity tends to shrink significantly after prolonged volatility and adjustment phases," and "This reflects weakened short-term confidence and market participation."

CryptoOnchain noted, "(Retail investor) activity contraction often coincides with phases where selling pressure is exhausted." It added, "Selling pressure is gradually weakening, but new demand has not yet begun to flow in earnest," and analyzed, "Because retail funds mainly form momentum in the early rebound phase, the absence of retail investor participation can limit upside potential in the short term." It added, "However, periods of reduced (retail investor) activity have often coincided in the past with times when large, long-term investors begin accumulating."

The analysis suggests that the number of active sending addresses could become a key indicator of a future Ethereum price rebound. CryptoOnchain said, "The current situation clearly shows short-term weakness and retail investor exit," adding, "Such an environment has historically often been observed near structural bottoms." It continued, "A genuine recovery signal will be captured when prices stabilize and the number of active sending addresses gradually rebounds," adding, "Conversely, if address activity declines further or remains stagnant for a long time, Ethereum may enter a deeper sideways phase."