Ethereum Long-Term Holders

Definition ∞ Ethereum long-term holders are entities or individuals who retain their Ethereum assets for an extended period, typically exceeding one year, demonstrating a conviction in its enduring value. These participants are generally less sensitive to short-term price fluctuations, acting as a stable base for the asset’s market structure. Their collective holding patterns provide significant signals regarding the overall health and future prospects of the Ethereum network. Their behavior differs substantially from speculative traders.
Context ∞ The activity of Ethereum long-term holders is a critical indicator frequently analyzed in market reports and crypto news. An increase in this cohort suggests strong underlying confidence and reduced selling pressure, which can support upward price movements. Conversely, a decrease might signal a shift in market sentiment or a move toward profit-taking. This group’s actions are crucial for understanding market cycles.