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Ethereum’s next steps – Long-term holder strength vs fall in network activity

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Ethereum’s long-term holders remain confident, with an average holding time of 2.4 years.

Ethereum's next steps - Long-term holder strength vs fall in network activity

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  • Despite recent market turbulence, ETH LTHs have maintained their grip on the market
  • ETH fees dropped by over 60% this week – A sign of falling on-chain activity

Ethereum (ETH), at press time, was continuing to demonstrate some resilience on the charts. In fact, long-term holders were leading this trend as the average holding time hit 2.4 years.

However, the network is still facing some challenges, including a significant drop in transaction fees and greater competition from Layer 2 solutions (L2s) and Layer 1 blockchains (L1s).

Ethereum’s long-term holder confidence

According to data from IntoTheBlock, Ethereum has an average holding time of 2.4 years right now. Analysis of the Long Term Holder NUPL (Net Unrealized Profit/Loss) chart revealed that Ethereum’s long-term holders remain confident too, with the NUPL metric hovering around 0.6.

This indicated that long-term holders may be in a state of moderate profit-taking – Reflecting their belief in Ethereum’s long-term potential.

Analysis of the chart also showed that the bar turned yellow, before turning green. The yellow bar hinted that for a moment, these holders were anxious. However, they have since become more optimistic about the altcoin’s fortunes. 

Ethereum NUPL

Source: Glassnode

The average holding time of 2.4 years highlighted the commitment of these holders, who are likely unfazed by short-term market volatility.

The NUPL value of 0.6 suggested that while some profits are being realized, most long-term holders remain steady while anticipating future gains.

Network activity shows concerning trends

However, despite the positive sentiment from Ethereum long-term holders, network activity has been on a decline lately.

According to data, network activity saw approximately 61.2M daily transactions – Representing a significant decline from its peak of nearly 80M transactions. More concerning is the steady downtrend on the activity chart – A sign that this isn’t a temporary fluctuation, but potentially a structural shift in network usage patterns.

Analysis of data from DefiLlama revealed a decline in daily volume too, confirming the fall in network activity.

Transaction fee data added another layer to this narrative, with sporadic spikes hitting 6-7b USD, but showing an overall decline in baseline fee generation. Such a fall in fee revenue raises questions about the network’s long-term economic security model. Especially as more activity shifts to Layer 2 solutions.

Competition from L2s and alternative L1s

The rise of Layer 2 solutions like Arbitrum and Optimism is evident, according to Artemis. In fact, the chart revealed a steady hike in daily transactions on these platforms. While L2s have been addressing Ethereum’s scalability issues, they are also diverting activity away from the mainnet.

While this migration reduces congestion on Ethereum, it also fragments the ecosystem. Users and developers are increasingly drawn to L2s for their lower fees and faster transactions. This could challenge Ethereum’s dominance in the long run.

L1 and L2 trends

Source: Artemis

Also, the chart highlighted that alternative L1 blockchains like Solana and Avalanche have been gaining traction too. The growing market cap and Total Value Locked (TVL) of these competing L1s underline their increasing influence.

Hence, Ethereum must continue to innovate to retain its position as the leading smart contract platform.

Ethereum’s market trend

At press time, Ethereum‘s price was maintaining its position above critical moving averages, with the 50-day MA at 3,395.62 and 200-day MA at 2,986.20. The trading volume was steady at 27.97K ETH daily – A sign that institutional interest has persisted, despite operational challenges.

The recent formation of lower highs after testing $4,000 hinted at potential distribution at higher levels. This, despite strong support being found at the 200-day MA.

Ethereum price trend

Source: TradingView

Market implications and future outlook

The divergence between strong holder metrics and declining network activity creates an intriguing dynamic for Ethereum’s future. While immediate network usage statistics might concern short-term traders, the unwavering confidence of long-term holders points to a deeper understanding of Ethereum’s evolving role in the cryptocurrency ecosystem.


– Read Ethereum (ETH) Price Prediction 2025-26


The key support level at $2,986 and resistance around $3,600 define Ethereum’s immediate trading range right now. Holder behavior might point to limited downside risks, despite operational challenges.

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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