#ETHMarketAnalysis

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Ethereum Holders' Retention Rate Recovers from 4-Year Low

The Ethereum price has recently been exhibiting a sideways trend, resembling a slow decline rather than stability. ETH is struggling to gain sustained upward momentum. The withdrawal of new participants from the market is negatively impacting investor sentiment. Despite this, some long-term on-chain metrics have begun to show signs of recovery.

This divergence creates a complex picture for Ethereum. While network growth is weak, the improvement in the number of investors holding Ethereum is somewhat offsetting this weakness.
Ethereum Sees a Sharp Drop in New Holder Numbers

The number of new Ethereum addresses has seen a sharp decline in the last few days. Daily new addresses fell by approximately 36% in just 48 hours, dropping from 298,000 to 191,000. This contraction has pushed Ethereum's Network Growth metric to its lowest level in two months.

This stagnation has been ongoing since the beginning of the month. The decrease in new participants is leading to a decline in natural market demand. The weak onboarding process indicates hesitation among individual investors. All these developments continue to put pressure on ETH price performance and reinforce a cautious market sentiment.
Ethereum's new address count is decreasing, but holders are showing a strong commitment to their positions. This statistic tracks the percentage of addresses that have held onto their ETH balance for two consecutive 30-day periods, essentially determining whether investors are holding onto ETH or exiting.

This percentage recently dropped to 92.4%, its lowest level in 4.5 years and since September 2021. This decline suggests lower commitment among new investors.

However, a slight improvement has been observed in the metric in recent days, indicating a degree of stability within the community. If this percentage continues to rise, it could provide solid structural support for ETH.
ETH Price Shows Signals of Recovery

Ethereum is trading at $1,904 and is managing to hold above the $1,816 support level. Although the price action appears sideways, a downward resistance line indicates a slow downward trend. Unless strong demand is generated, ETH may continue to trade weakly.

The Chaikin Money Flow indicator, however, offers cautious optimism. The CMF has moved into positive territory after a gradual rise. This movement points to an improvement in capital inflows. A turnaround from a downtrend is essential for a sustainable Ethereum price recovery.
If inflows continue and support holds, Ethereum could rise again from $1,816 and attempt a move towards $2,165. A break above this resistance level would invalidate the current downtrend. Such a reversal would renew investor confidence and strengthen the bullish momentum.

However, this scenario will be disrupted if capital flows do not remain positive. A break below the $1,816 level would invalidate the recovery thesis. In that case, the Ethereum price could fall to $1,600. This would increase the risk of a decline and cause bears to take control of the overall cryptocurrency market.
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