Although the entire market is facing a downtrend with Ethereum, altcoin king holders are in a surprisingly better position than other coins in the market.
Are Ethereum Investors Safe?
Actually they are. The reason behind this is the quick recovery of Ethereum after the price drop. Other altcoins usually fail to make substantial recovery after a drop in price, Ethereum on the other hand sees a drop in prices in line with the rise.
Thus, technically Ethereum has mainly been in a rally throughout all of this, but the coin often registers red candles due to broad market signals.
This is why less than 20% of all Ethereum investors have seen any sort of loss, despite a loss of around 33% since its all-time high.
During such an uncertain market, investors are expected to hold on to their assets for as long as possible and make a suitable exit, and the same is true of Ethereum.
But one observation that separates Ethereum investors from other coin holders is that their HODLing sentiment is not recent.
Since July, the velocity of the network has been falling, indicating that the rate at which ETH changes hands has decreased significantly. This 6-month HODLing fact is also verified by the 5 million increase in addresses of mid-term holders (1 month – 12 months).
But now that Ethereum is trading at its 4-month low of $3221, there will be many potential investors who want to buy the dip 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 bearish.
The sentiment of HODLing has reduced on-chain volume, resulting in increased network value against lower transaction value. Additionally, the market cap of the altcoin is also at a 7-month low.
Thus, once there is a positive sign of recovery, investors can jump in until a “wait and see” appears to be the more appropriate strategy.