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Ethereum (<a href="https://crypto.news/price/ethereum/">ETH</a>) faces a dual challenge as sustained whale sell-offs coincide with a drop in transaction volume despite a bullish trend of persistent development activity. 
Behavior analytics resource Santiment called attention to these metrics in its latest <a href="https://insights.santiment.net/read/shed-a-teareum-for-ethereum-7365?utm_source=twitter&amp;utm_medium=post&amp;utm_campaign=twitter_shed_a_teareum_for_ethereum_insight_b_082823/&amp;fpr=twitter" target="_blank" rel="noopener">insights</a> on the current state of the Ethereum market. 
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 🎢 <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Ethereum</a>'s market capitalization has undoubtedly been a rollercoaster, like most of <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#crypto</a>. But are its metrics pointing to any particular concerning signs? Nope. Our latest insight looks at <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$ETH</a>'s rising development activity and plenty more. 👇<a href="https://t.co/NSLfp2t0go" target="_blank">https://t.co/NSLfp2t0go</a> <a href="https://t.co/D5vwHvourV" target="_blank">pic.twitter.com/D5vwHvourV</a>— Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1696404165772341508?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 29, 2023</a>
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While Ethereum maintains its grip above the $1,600 price level, these metrics suggest a mixed outlook. On-chain transaction and trading volumes have experienced significant declines since their peak last November. 
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Notably, Ethereum’s on-chain volume has plummeted to a current value of 4.77 billion. Similarly, transaction volume has dropped to a 9-month low of 333,990 ETH, translating to $566.48 million. This follows a recent <a href="https://crypto.news/ethereum-holds-above-1-8k-whale-activity-drops/">decline</a> in whale activity. 
Santiment noted that this reduction in utility isn’t necessarily alarming, but it indicates waning trader interest during a period of uncertainty surrounding Ethereum’s valuation around the $1,650 mark. 
Key players, notably <a href="https://crypto.news/ethereum-co-founder-buterin-moved-600-eth-to-coinbase/">large holders</a> of 10 to 10,000 ETH, have contributed to this dynamic. Over the past four months, these holders have actively offloaded their assets, reversing their earlier accumulation trend.&nbsp; 
These sell-offs coincided with ETH’s recent one-year high of $2,120. As a result, market watchers have attributed the distribution campaign to a surge of profit-taking trades. These addresses only hold 26.91% of the total ETH supply at the reporting time. 
However, this trend does not definitively suggest a decline in ETH’s prospects. Whales’ actions might not directly dictate price trajectories, Santiment says.&nbsp; 
Interestingly, Ethereum’s development team remains committed and active amid the profit-taking trades and declining investor interest, with ongoing improvements and innovation. Development activity on the network has been moderately high. 
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 ETH price – Aug. 29 | Source: Trading View
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Meanwhile, ETH holds above the $1,600 territory despite the distribution trend. Like the rest of the market, Ethereum has continued to trade within a range over the past week, with only a 1.25% drop. The asset is changing hands at $1,646 at the time of writing. 
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Ethereum sees sell-offs amid drop in transaction volume

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