The long-standing investors in Ethereum (ETH) have displayed more optimistic sentiment compared to Bitcoin (BTC) holders.
Data from research firm IntoTheBock revealed a shift in the market dynamics starting from early 2024 and gaining momentum in 2025, as the cohort of ETH long-term holders increased their positions and dominance to nearly 75%.
In contrast, BTC long-term holders have been consistently offloading their assets, causing their dominance to dip below 60%. The firm noted,
Can ETH Make Progress in the First Quarter?
The recent trend is not surprising, given that ETH’s price performance has been trailing behind BTC since early 2024. While BTC surged past its previous cycle high to reach over $108K, making most holders profitable, ETH has not achieved a similar milestone.
Hence, many ETH enthusiasts might be holding onto their assets in hopes of a future surge to realize gains or recover their initial investments.
There has been a slight disparity in institutional demand for ETH and BTC entering the new year. As per Soso Value data, ETH exchange-traded funds (ETFs) are expected to witness net outflows by the end of the second week, unlike in November when these products experienced five consecutive weeks of inflows.
In contrast, BTC observed net inflows over the past fortnight. If this trend of institutional demand continues, BTC might outpace ETH in terms of price performance.
Nevertheless, there is a glimmer of hope for ETH as suggested by the ETH/BTC ratio, which shows a possible turning point for ETH. This ratio monitors how ETH’s price fares against BTC’s and recently hit a 4-year low of 0.30, highlighting ETH’s underperformance during that period.
Despite this, the ratio formed a double bottom pattern, indicating a potential recovery and a shift in market sentiment favoring ETH.
Considering the recent market slump that pushed ETH to its December lows above $3K, there is a chance for ETH to bounce back from the support range of $3K-$3.3K, with an initial target set at $3.6K. This projection aligns with the sentiments expressed by some ETH traders on X (previously known as Twitter).
Moreover, the potential resurgence of ETH could be further reinforced if it manages to reclaim the 50-day Exponential Moving Average (EMA).