Small-Time Ethereum Holders Hit New High As Sentiment Turn Positive
The number of Ethereum small-time holders is on the rise. With each passing month, as more investors move into the market, ethereum has snatched some of the largest market shares. This is evidenced in the growth rate of the network, as well as the amount of ETH being held by investors on their balances. This time around, the number of ETH small-time holders has hit a new record.
Holders Holding More Than 0.1 ETH At ATH
Glassnode reported on Monday that the number of small-time Ethereum investors holding more than 0.1 ETH on their balances had touched a new high. This easily follows the trend of adoption that the ethereum network has seen in recent times. These small-time holders clocked in at a new high of 6,823,620 on Monday.
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Although the growing adoption of the network is billed as one of the major driving factors behind this, it is can also be a result of the growing gas fees on the network. For one, ethereum transaction fees can run above $100 on bad network congestion days, which can be often, so investors would need about 0.1 or above to complete transactions on the network.
This trend of wallet balances hitting new all-time highs follows the accumulation trend of ETH though. During the market crash, Ethereum whales had bought over $500 million worth of ETH. Smaller investors had followed this move and increased their holdings, leading to a new all-time high in the number of wallet addresses holding 1 ETH and above on their balances.
Ethereum Follows Market Sentiment
The recent uptick in the number of addresses holding more than 0.1 ETH has followed market sentient. Since the crash, market sentiment had dived into the deeply negative, indicating that investors were wary of putting more money into the market. However, this has started to change as most digital assets have recovered a bit from the crash, as evidenced by the Fear & Greed Index.
ETH trading at $2,746 | Source: ETHUSD on TradingView.com
After hitting one of its lowest point, the Fear & Greed Index had begun to recover. Maintaining about a week in the extreme fear territory, it has now moved out of it and into fear as faith in the market continues to recover. Currently, the index is sitting at a score of 26, 15 points up from its low of 11.
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On the price side, ETH has continued to maintain its position above $2,700. The digital asset has built significant resistance at this level but remains vulnerable to drawdowns if bids do not continue to hold up. Its next significant resistance level is at $2,780, a point which it would have to beat if the uptrend is to continue.
Featured image from Financial Times, chart from TradingView.com