Ether (ETH), the native Ethereum token, has dropped 18% after achieving $4867 ATH on November 10. Now it is valued at $3900. This drop has not stopped small investors from investing in it, but the investments are being made in small amounts.
Increased Investments in ETH by Small Investors
Data from the blockchain analytics website Glassnode shows the number of investors holding 0.01 or less ETH on December 4 was 19.95 million. This was the date when ETH had dropped to $3575. The balances and wallets holding a minimum of 0.1 ETH continued to increase even after this correction. Their numbers reached 6.37 million ATH on December 12. It caused the ETH addresses without zero balance to reach as high as 70 million as of December 12. On the other hand, addresses with equal or less than one ETH dropped as the prices went down. It indicated they do not want to purchase sessional dips of ETH.
Investor Investing in ETH in Small Quantities Coming Onboard
These retail investors continued to invest in ETH even as its price dropped to meet the supporting level. On Monday, ETH went down by 5% to reach $3900 after a selloff. It followed similar corrections seen in other cryptocurrencies. Even with these corrections, ETH continued to attract buyers.
While small retail investors continue to buy Ether, larger investors are sending conflicting signals. The new data shows a minor recovery in buying by Ethereum holders holding at least 1000 ETH. Overall, the number of such investors has dropped to 6350 from 7200 in 2021. The current ETH price is hovering below $4000. This is the resistance point at which some bearish trend is forming. Its strong supporting point remains at around $3650. Bearish signals in Ethereum prices can be noticed when it remains below $4000. ETH/USD price will remain under pressure if no recovery is made, taking it above $4000.