Although the entire market has been facing a downtrend along with Ethereum, the altcoin king holders have surprisingly been in a better position when compared to other coins in the market.
Ethereum investors are safe?
Indeed they are. The reason behind this is Ethereum’s quick recovery post a price fall. Other altcoins usually fail to post a substantial recovery after a price fall, Ethereum on the other hand observes a price fall in accordance with the rises.
Thus, technically Ethereum has primarily been in a rally all this while but the broader market cues cause the coin to register red candles frequently.
This is why despite losing almost 33% since its all-time high, less than 20% of all Ethereum investors have seen any kind of loss.
During such an unsure market, investors are expected to hold their assets for as long as they can and find an appropriate exit, and that is the case with Ethereum as well.
But one observation that puts Ethereum investors apart from other coin holders is that their HODLing sentiment is not recent.
Ever since July, the network’s velocity has been falling, which indicates that the rate at which ETH changes hand has reduced significantly. This 6-month HODLing fact is also verified by the 5 million increase in mid-term holders’ (1 month – 12 month) addresses.
But now that Ethereum is trading at its 4-month lowest of $3221, there will be many potential investors looking to buy the dip and enter the market as soon as possible.
It is important for them to practice caution since Ethereum’s on-chain indicators are slightly bearish currently.
The HODLing sentiment has led to reduced on-chain volume which in return led to the network value shooting up against a low transaction value. Additionally, the altcoin’s market value is also at a 7-month low.
Thus, once there is a positive indication of recovery, investors can jump in until then “wait and watch” seems to be the more appropriate strategy.
This news is republished from another source. You can check the original article here.