Retail investor exodus limits potential for ETH rebound, analyst says

Ethereum's network activity has fallen to a one-year low, signaling a significant departure of retail investors from the market, according to an analysis by CryptoQuant contributor CryptoOnchain. The analyst noted that the number of active Ethereum sending addresses has dropped to around 170,000, which suggests retail participants have either exited or are currently unwilling to trade. Historically, retail activity tends to decline after prolonged periods of volatility and price corrections, indicating weakened short-term confidence. From an on-chain perspective, such low network activity often coincides with the exhaustion of selling pressure. While this may mean immediate downward pressure has eased, it also points to a lack of new demand. The analyst explained that this situation could limit short-term upside, as retail investors are typically the primary drivers of momentum during the initial phases of a market rebound.