Ethereum (ETH) investors appear to be adopting different strategies despite market uncertainty, according to data from CryptoQuant.
According to an analyst from CryptoQuant who goes by the name “Darkfost,” there is a noticeable change in Ethereum investor behavior. So far, Ethereum whales and small investors are showing signs of inactivity, while mid-sized investors are seeing a large increase in ETH investments.
What Does Onchain Data Tell Ethereum (ETH) Investors?
Darkfost claims that its addresses holding more than 100,000 Ethereum are largely inactive. This trend is seen among retail investors, who tend to accumulate smaller amounts of Ethereum. In contrast, addresses holding 10,000-100,000 ETH are gradually increasing their purchases. On the other hand, mid-sized investors holding 10,000-100,000 ETH continue to accumulate. However, investors with 100-1,000 ETH in their wallets tend to sell.
These behaviors among different investor segments indicate a complex market outlook for Ethereum. In general, large investors including institutional investors, stock exchanges, and large organizations can significantly influence market trends. The lack of clear moves by large investors suggests that Ethereum has an uncertain price structure in the short term.
This ongoing uncertainty on the Ethereum side could end up with a rise in the ETH/BTC parity. ETH/BTC, which has been in a downtrend since April 2021, could spark a rally for the altcoin market in the event of a breakout. In this process, the news flow from the crypto industry will play a major role. The rally will become stronger when positive and important news is released.
