 ▲ Ethereum (ETH) |
Ethereum (ETH) appears to be rebuilding its market support base as the departure of existing holders has slowed and retention rates have rebounded, despite the headwind of slowing new user inflows.
According to crypto media outlet BeInCrypto on February 28 (local time), Ethereum’s holder retention rate has entered a recovery phase after falling to 92.4%, its lowest level in 4.5 years. The metric measures the percentage of addresses maintaining wallet balances over a 30-day period, and it had dropped to its lowest level since September 2021, reflecting weakened investor sentiment. However, as retention recently began to rebound, analysts suggest that despite volatility among new investors, conviction among existing holders is actually strengthening.
Network growth is passing through a short-term slowdown. Over the past 48 hours, daily newly created addresses fell 36% from 298,000 to 191,000, marking the lowest level in two months. While the decline in new participants weakens upward price momentum, long-term holders maintaining their positions is viewed as a positive signal, helping to secure downside resilience in the market.
From a technical perspective, Ethereum is firmly defending the key support level at $1,816. Despite downward trendline resistance pressuring prices, buying interest above the support level is preventing further sharp declines. The Chaikin Money Flow indicator, which measures the quality of capital inflows, is also showing gradual improvement, lending support to cautious optimism.
Market experts project that if Ethereum maintains support at $1,816 and capital inflows continue, it could attempt to break through the $2,165 resistance level. A breakout above the current descending trendline would likely restore investor confidence and potentially trigger a full-fledged rebound rally. However, if demand fails to support the move, a gradual downward trajectory may persist for the time being, making changes in trading volume a key factor to watch.
Ethereum stands at an inflection point where the short-term challenge of weak new inflows intersects with strengthening fundamentals driven by improving holder retention. As institutional interest and technical upgrades continue, the resilience of the Ethereum ecosystem is expected to become a key driver of any future market rebound. Investors are shaping their strategies by monitoring price consolidation near support levels and signs of renewed on-chain activity.
*Disclaimer: This article is for investment reference only, and we are not responsible for any losses incurred based on this information. The content should be interpreted for informational purposes only.*