Long-Term ETH Holders Accumulate as Traders Sell into Rallies

  • Long-term holders now control 22.8M ETH, showing growing conviction.

  • Exchange inflows rise during rallies, often followed by price drops.

  • Active Ethereum addresses remain stable despite market fluctuations.

Recent on-chain statistics show the separation in the market forces of Ethereum. As much as long-term holders keep buying the ETH, short-time traders often sell it on rallies. These contrary arguments propose an environment of a market that is under the pendulum spectrum of long term optimism and short term securities.

Addresses holding ETH for extended periods have steadily increased their share since 2017. These so-called strong hands have some 22.8 million ETH or more compared to about less than 5 million at the time eight years ago. The wallets have continued to make activities throughout the significant markets, such as the 2018, 2021 and 2024 highs.

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Short-Term Traders Take Profits During Rallies

Conversely, late 2024 to mid-2025 spot inflow data reveals that traders transfer in high amounts of ETH to exchanges in price surges. Such measures to make up for the sell-offs or price corrections tend to be in harmony.

However, one especially prominent case is in February 2025 when ETH exchange inflows were almost at the $10 billion mark. The price went down to 2,500 dollars between the same period in which it was priced at 3,000 dollars. The same inflow was evident during November 2024 and May 2025, which usually causes some pressure on prices.

There are usually periods of lower inflows when the prices tend to be more stable or on their way to recovery. This implies that the day to day volatility of Ethereum is as a result of short term market participants.

Network Usage Remains Steady Amid Volatility

Nevertheless, the network of Ethereum is resilient in spite of the price volatility and the trading patterns. The active addresses have remained fairly steady and have not shown signs of a sharp upward or downward trend despite the sharp fluctuation of prices.

The user activity was better during bullish periods later in 2023 and earlier in 2024 but it has not been as affected in more volatile times. This constant interaction is an indicator of extensive applications and adoption throughout the ecosystem beyond hypothetical trading.

Recent Market Movement Reflects Renewed Activity

In the last 24-hour, Ethereum grew by 7.2% to 2,429.18 dollars. This was followed by its market capitalization, which surged over 290 billion dollars. The amount of trade experienced an increase of 27.8 billion dollars, which indicated interest by the market.

The supply of Ethereum stands at approximately 120.71 million ETH in accord with its deflationary issuance schedule. The fact that static accumulation of holders has been combined with sustained network utilization is also defining the future of Ethereum.

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