On-chain data shows that Ethereum investors with a holding period greater than three years accelerated their sales to levels not seen since 2021.
Seasoned Ethereum Holders Increase Their Distribution
As on-chain analytics firm Glassnode explains in a new article on X, Ethereum holders aged 3 to 10 have recently increased their spending. These investors belong to a larger group known as the Long-Term Holders (LTH) cohort, whose holding period is 155 days.
Statistically, the longer an investor holds onto their coins, the less likely they are to sell them at some point. As such, LTHs as a whole can be considered diamond hands.
Since ETH investors aged 3-10 years would be old even by LTH standards, it can be assumed that they include the most loyal HODLers. Given this stature of the cohort, the behavior of its investors may be worth monitoring, as selling them could be a sign that market conditions have forced even the most experienced players to exit.
One way to track group behavior is to use the Spent Volume by Age indicator, which tracks the transactions that different age groups of investors make on the blockchain. Below is the chart of the metric shared by Glassnode that shows the trend of its 90-day moving average (MA) for Ethereum over the past few years.
The value of the metric appears to have shot up in recent months | Source: Glassnode on X
As the chart shows, the volume spent by age has exploded for investors in the 3-10 year holding period bracket since late August. Currently, the 90-day MA sits above 45,000 ETH, meaning market veterans are selling tokens worth $139 million every day.
“This is the highest level of spending by seasoned investors since February 2021,” the analytics firm noted. Besides the February sell-off, this group also participated in almost the same level of distribution alongside the bullish peak in the second half of this year.
As the latest wave of selling arrived, Ethereum saw bearish momentum. All that remains to be seen is whether this drop in prices would lead to a new bear market like at the end of 2021, or if the uptrend would regain a foothold like in February 2021.
The LTH selloff is not the only bearish factor ETH has faced recently. As seen in the chart shared by CryptoQuant community analyst Maartunn, Ethereum spot exchange-traded funds (ETFs) have seen significant outflows over the past month.
The trend in the spot ETF netflows for Ethereum and Bitcoin | Source: @JA_Maartun on X
From the chart above, it appears that Ethereum spot ETFs are experiencing a negative 30-day net flow of $1.21 billion, while Bitcoin has seen an even worse situation with $2.80 billion in net outflows.
ETH Price
At the time of writing, Ethereum is trading around $3,100, down more than 4% in the past week.
Looks like the price of the coin has plunged during the past day | Source: ETHUSDT on TradingView
Featured image from Dall-E, Glassnode.com, CryptoQuant.com, chart from TradingView.com
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