Despite the recent sell-off of Bitcoin by long-term holders, Ethereum investors have chosen a different path by continuing to accumulate the asset. Data from IntoTheBlock shows that the number of long-term Ethereum holders accumulating the asset has been on the rise since January. Currently, a significant percentage of the total Ethereum market capitalization is staked, indicating a strong demand for native returns among Ethereum investors.

The staking of Ethereum is a mechanism that allows investors to earn passive income on their holdings, making it a more attractive investment option compared to Bitcoin. Additionally, the potential approval of an Ethereum ETF could be another factor influencing the behavior of long-term holders. These investors might be waiting for this regulatory milestone and a potential surge in price to new all-time highs before considering selling their ETH.

Historically, long-term investors in both Bitcoin and Ethereum tend to distribute their coins during bull market peaks, capitalizing on profits accumulated during bearish periods. However, the current scenario is significantly different, with Ethereum investors going against the norm. Despite Bitcoin reaching recent all-time highs, long-term Ethereum holders have chosen not to sell their assets, potentially waiting for further price appreciation.

The divergence in the behavior of long-term holders in both Bitcoin and Ethereum could be driven by the emergence of attractive yield opportunities within the Ethereum ecosystem. Unlike Bitcoin, Ethereum offers staking mechanisms that allow holders to earn passive income on their holdings, and there are additional yield strategies within the decentralized finance space. This could be a significant factor influencing the behavior of long-term Ethereum holders.

The activity of long-term holders is critical to understanding market cycles, and historical data shows that this profit-taking usually begins in the early stages of a bull market and continues after the cycle peak. Therefore, monitoring this activity can help more accurately estimate market peaks, and the current divergence in the behavior of long-term holders in both Bitcoin and Ethereum could be an indication of a potential shift in the market dynamics.