While 2025 was expected to be a record year for Bitcoin (BTC), this was not the case for Ethereum (ETH). Ethereum hit a new 2021 high in August, despite challenges, but has been trending lower since then.
However, the time may have come for Ethereum to hit rock bottom.
According to analysis by CryptoQuant analysts, retail investor demand for Ethereum has weakened significantly recently.
According to our analysis, we observed a decrease in retail investor activity and a decrease in the number of active sender addresses on Ethereum.
Historically, the exit of retail investors from the market also served as a sign of structural dips, and these periods were often followed by asset accumulation by large investors.
According to the data, the number of active sender addresses on Ethereum has recently decreased to 170,000. This suggests that retail investors have already exited the market or are currently showing little appetite for trading.
The analyst also noted that a decline in retail investor activity generally coincides with a decline in selling pressure. However, the analyst said participation from retail investors remains lacking, which could limit upside potential in the short term.
“A lack of retail investor participation could limit Ethereum’s upside potential in the short term, as private capital primarily provides the necessary momentum during the recovery phase.”
However, in the past, periods of decline in individual investor activity often coincided with periods when large, long-term investors began accumulating wealth.
Finally, the analyst suggested that a decline in the number of active addresses could also be an important indicator of future Ethereum price recovery. The analyst added: “While the current situation clearly points to a short-term downturn and retail investors exiting the market, this type of environment has historically been observed primarily near structural bottoms.”
*This is not investment advice.
