On-chain data shows that Ethereum investors with holdings of more than three years have increased their selling to levels not seen since 2021.
Seasoned Ethereum holders are increasing their distribution
As explained by on-chain analytics company Glassnode in a new after on These investors belong to a broader group known as the long-term holding cohort (LTH), with a holding period of 155 days.
Statistically, the longer an investor holds onto their coins, the less likely they are to sell them at any time. As such, the LTHs as a whole can be considered diamond hands.
Since the 3 to 10 year old ETH investors would be old even by the standards of the LTHs, it can be assumed that they are among the toughest HODLers. Given this status of the cohort, it may be worth keeping an eye on the behavior of the investors, as selling by them could be a sign that market conditions have forced even the most seasoned entrepreneurs to exit.
One way to track the group’s behavior is through the Spent Volume by Age indicator, which tracks the transactions that different age categories of investors perform on the blockchain. Below is the chart for the metric shared by Glassnode showing the trend in the 90-day moving average (MA) for Ethereum over the past few years.
The value of the metric appears to have shot up in recent months | Source: Glassnode on X
As shown in the chart, volume issued by age has skyrocketed since late August for investors in the 3- to 10-year range. Currently, the 90-day MA is above 45,000 ETH, meaning the market’s veterans are selling tokens worth $139 million every day.
“This marks the highest level of spending by seasoned investors since February 2021,” the analytics firm said. In addition to the February sell-off, this group also participated in almost the same level of distribution next to the bull run top in the second half of that year.
Now that the latest sell-off has arrived, Ethereum has witnessed bearish momentum. It only remains to be seen whether this price drop would lead to a new bear market like at the end of 2021, or whether the bull run will gain a foothold again like in February 2021.
LTH selling isn’t the only bearish factor ETH has faced lately. Like the chart shared by CryptoQuant’s community analyst market day shows that Ethereum spot exchange-traded funds (ETFs) have witnessed significant outflows over the past month.
The trend in the spot ETF netflows for Ethereum and Bitcoin | Source: @JA_Maartun on X
From the chart above, Ethereum spot ETFs are seeing negative 30-day net outflows of $1.21 billion, while Bitcoin has had an even worse time with net outflows of $2.80 billion.
ETH price
At the time of writing, Ethereum is trading 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
Featured image from Dall-E, Glassnode.com, CryptoQuant.com, chart from TradingView.com
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