Ethereum’s long-term holders are offloading their assets in a move that’s raising eyebrows across the crypto landscape. As of June 2025, Ethereum’s “Liveliness” metric—a measure of activity among long-term holders—has surged to unprecedented levels, hinting that seasoned investors are cashing out amid tepid market demand. This shift in sentiment could spell trouble for ETH prices, which have already shown signs of vulnerability.
Market Jitters: What’s Behind the Sell-Off?
The Liveliness indicator, often seen as a barometer for investor behavior, is now flashing warning signals. Traditionally, a high Liveliness suggests that more coins are being moved out of long-term storage and into circulation. This isn’t just a blip; it’s a clear sign that veteran Ethereum holders are making a calculated exit. “The market dynamics have changed significantly,” explains crypto analyst Sarah Liu. “With the current macroeconomic uncertainties, many are choosing to liquidate their holdings rather than risk further depreciation.”
Ethereum’s price has been on a rollercoaster ride over the past few months. As of today, the token is struggling to maintain its footing above the $1,800 mark—down from its peak earlier this year. Several factors are fueling this volatility: regulatory pressures, global economic slowdowns, and the ever-present shadow of Bitcoin’s dominance. As explored in our recent coverage of Bitcoin’s potential struggles in Q3, Ethereum’s challenges are compounded by the broader market dynamics.
Weak Demand: A Harbinger of More Pain?
Adding to the woes is the apparent lack of robust demand to absorb the influx of Ethereum into the market. Without sufficient buying pressure, the increased supply could exacerbate price declines. Crypto exchanges have reported a steady increase in Ethereum deposits, a telltale sign of impending sell-offs. “It’s a classic supply and demand mismatch,” notes digital asset strategist Mark Thompson. “Unless we see a surge in institutional interest or some groundbreaking technological development, Ethereum might continue to face headwinds.” Recent insights into Ethereum’s network growth and spot ETH ETF inflows suggest potential avenues for renewed investor interest, yet the market remains cautious.
The broader crypto market isn’t doing Ethereum any favors either. Bitcoin, often seen as the bellwether for the entire digital asset space, has been unable to break past significant resistance levels, casting a shadow over altcoins. Furthermore, the much-anticipated impacts of Ethereum’s recent network upgrades, including the transition to Ethereum 2.0, have yet to materialize in the form of substantial price appreciation.
Historical Context and Future Implications
Historically, Ethereum has weathered similar storms. The 2018 bear market saw ETH prices plummet by over 90%, only to rebound stronger in subsequent years. However, this time around, the stakes seem higher. With a more mature market and increased institutional involvement, the decisions of long-term holders carry greater weight.
Looking ahead, the question remains: Can Ethereum regain its momentum, or are we bracing for a prolonged downturn? Some experts argue that the current sell-off might be a temporary phenomenon, driven by short-term uncertainties. Others caution that without a clear catalyst for growth, Ethereum’s price could remain under pressure for the foreseeable future.
Conclusion: Navigating Uncertainty
As Ethereum’s long-term holders continue to divest, the crypto community is left grappling with the implications. Will this trend trigger a broader market correction, or is it merely a hiccup in Ethereum’s long-term trajectory? While the answers remain elusive, one thing is certain—investors must stay vigilant, ready to adapt to the ever-evolving crypto landscape. Only time will tell if Ethereum can weather this storm and emerge stronger on the other side.
Source
This article is based on: Ethereum Long-Term Holders are Selling Again: Are Bears Taking Over?
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
