On chain data from the Ethereum network reveals an increasingly pronounced divergence between individual investors and major wallets. As 2025 draws to a close and 2026 approaches, the number of retail addresses accumulating ETH is nearing all time highs. However, several core indicators suggest that ETH’s price momentum is not strengthening in tandem with this surge in demand.
Buyers pile in but signals remain cautious
Recent data indicates that small investors on the Ethereum network have sharply increased their buying activity over the past months. Analysts note that similar behavior has typically been seen in the later stages of previous market cycles. This means that even robust accumulation from retail investors is not enough on its own to guarantee a continued bull run.
Meanwhile, it is believed that large holders, or so called whales, tend to gradually offload their assets to meet growing demand during such cycles. The fact that prices are struggling to gain momentum despite this heightened buying appetite could be a sign of significant selling pressure from the other side of the market.
Mini glossary: SOPR, or Spent Output Profit Ratio, is an on chain indicator reflecting whether spent coins are changing hands at a profit or a loss. When the value hovers near 1, it suggests most investors are trading at their breakeven point.
The SOPR indicator itself has remained close to 1 for an extended time, supporting this cautious picture. This trend signals that there is little fresh capital entering the market, with most transactions neither locking in significant profits nor losses. Analysts caution that markets stuck in this range for too long may be prone to increased fragility.
On chain data analyst PelinayPA explains that retail investors are buying aggressively, yet SOPR does not yet confirm a strong upward trend. According to PelinayPA, growing demand without upward price movement points to heavy selling pressure elsewhere in the market.
PelinayPA, a well known figure on the CryptoQuant platform for on chain analytics, interprets the situation as reflecting a period when whales are distributing their ETH to meet retail demand.
What are exchange data and NUPL metrics signaling?
Exchange data shows that the number of Binance deposit addresses belonging to users remains notably below the peaks of the previous bull market. This suggests that many investors prefer holding their ETH in private wallets rather than transferring it to exchanges. While this trend may support a more gradual price decline, it does not eliminate existing risks in the market.
Mini glossary: NUPL, or Net Unrealized Profit/Loss, is a metric that gauges the overall balance of unrealized gains and losses in the market. Lower readings suggest that investor sentiment is approaching historically weak territory.
The NUPL data confirms that unrealized profits have dropped, but the market has not yet reached the extreme low levels seen during the bear markets of 2018 and 2022. This means there is still potential room for ETH to decline further before hitting historically oversold areas.
PelinayPA observes that if the SOPR metric falls below 1, paired with an even weaker NUPL, the risk of a deeper correction in ETH could increase.
Analysts stress that observing these two indicators together is more meaningful than interpreting them in isolation. While on chain evidence points to strengthening retail demand without a corresponding rise in price, the outlook for ETH in the short term remains uncertain.
