I noticed something interesting when looking at on-chain data this morning. Small Ethereum holders are selling right now as prices are rising, which caught my attention. According to Santiment, the cohort of addresses with 0 to 0.01 ETH ( essentially retail traders ) liquidated 1,791 ETH in just two days during this recent rebound.

What’s funny is that these same retail investors quietly accumulated from January to March, but as soon as it goes up, they take their profits. Between April 2025 and December, they even added 6,195 ETH to their wallets, but now, their behavior has completely changed. Retail traders really don’t seem convinced that this rally will hold.

After +17% since the end of March, it seems like everyone thinks it’s a trap. Historically, when the majority thinks one thing, the market often does the opposite. ETH is testing $2,320–$2,340 right now. We’ll see if small holders keep selling or if a reversal is coming.

It’s not necessarily a bad sign for Ethereum in the long term, but it clearly shows that retail traders are playing short-term here.