Long-term Ethereum Holders’ Spending Levels Reach Highest Level Since 2021

Long-term Ethereum holders who have held the asset for 3-10 years are now spending over 45,000 ETH daily, according to Glassnode data. It represents the highest spending volume for long-term holders since 2021, reflecting the massive sell-off by long-term holders.

Ethereum Falls Below $3,500 Amidst Massive Dump

The increase in spending rates by old holders highlights how long-term holders are dumping the altcoin. Unsurprisingly, the dumping has had an impact on the Ethereum price. The token price plunged below $3,500 in the past 24 hours.

According to CoinMarketCap, ETH has declined by almost 9% over the past seven days. Most of the decline occurred in the past 24 hours, despite the week’s overall volatility.

The altcoin was trading at $3,640 on November 10 before testing levels below $3,500 twice during the week. It eventually crashed on November 14, falling as low as $3,080. The asset is now at its lowest level since mid-July, effectively leaving it down almost 6% year-to-date.

However, it’s not just the dumping of long-term holders that is causing the price pressure for Ether. The ETH spot exchange-traded fund (ETF) has also been seeing outflows all week, with a negative $220 million net flow on November 14. This marks the fourth day of consecutive outflows.

Meanwhile, open interest in Ether derivatives has also fallen to similar levels as in the first half of the year. According to CoinGlass data, the open interest on November 14 was $38 billion, significantly below the $60 billion range seen in August.

Interest in Ether Remains Despite Downturn

Despite the market downturn, some whales and institutions continue to buy ETH. Leading ETH treasury company, Bitmine, has been buying the dip. One of its wallets recently received over 9,000 ETH in what looks like an OTC deal.

The company chairman, Tom Lee, recently debunked speculation that he regrets buying ETH. Lee noted that ETH is a supercycle and believes selling pressure will soon end. This echoes the company’s official position in a tweet.

Others also share the same position. One wallet bought 16,937 ETH today and has accumulated 422,175 ETH, worth approximately $1.34 billion, since November 4. Even though the wallet is already sitting on unrealized losses due to the average buy price being over $3,400, they have continued stacking.

The bullish view on the long-term outlook is further reinforced by the notion that the current decline is merely a temporary setback.

Experts believe that the crash in crypto and equity prices on November 14 was due to recent uncertainty about a December rate cut and the subsequent liquidations. However, they expect that to be resolved soon.

Meanwhile, Ethereum fundamentals remain strong, with the number of Ethereum Layer 2s increasing. The network also recently reached a new peak in stablecoin volume and transaction count.