Ethereum 7% Dip Tests Retail “Diamond Hands,” But Coinbase CEO Sees Silver Lining
Ethereum (ETH) has fallen 6.6% within the final 24 hours, buying and selling round $1,947, as broader crypto markets proceed to navigate volatility and macroeconomic headwinds.
Yet amidst the value turbulence, Coinbase CEO Brian Armstrong is pointing to a stunning supply of optimism: retail investor resilience.
Retail “Diamond Hands” Hold Strong Despite Ethereum’s 7% Drop
Armstrong highlighted that, past weathering the market downturn, Coinbase’s retail customers are actively buying the dip, leading to internet will increase in BTC and ETH holdings.
“Retail customers on Coinbase have been very resilient throughout these market circumstances, in line with our knowledge,” Armstrong wrote. “They’ve been shopping for the dip.
According to the Coinbase executive, they’ve seen a local unit improve for retail customers throughout BTC and ETH on the trade.
Citing diamond hands, Armstrong says most of Coinbase’s clients had native unit balances in February equal to or larger than their balances in December.
The Coinbase CEO framed this development as a bullish counter-narrative to the current market gloom. While Bitcoin has pulled again towards the $68,000–$69,000 vary and Ethereum has seen a 7% drop to ranges under $2,000, retail traders are demonstrating conviction somewhat than panic.
The “diamond arms” phenomenon, the place customers keep or improve their crypto holdings regardless of drawdowns, suggests a maturing retail base which will assist stabilize costs and underpin long-term adoption.
Mixed Views Emerge as Retail Conviction Faces Market Risks
However, not everybody shares Armstrong’s optimism. Some critics argue that holding by sharp declines merely displays important drawdowns somewhat than true resilience.
Beyond holding conduct, neighborhood members are additionally voicing broader coverage and market entry issues.
“Retail customers deserve entry to yield on stablecoins and the reversal of the accredited investor regulation,” commented Wendy O.
This means that expanded DeFi participation and yield opportunities might additional strengthen retail confidence.
The context is necessary, coming days after Coinbase’s Q4 2025 earnings revealed declining buying and selling volumes amid an 11% drop in broader crypto market capitalization.
Yet the trade continued to see inflows of native models from retail customers, hinting at a ground of accumulation which will cushion the market throughout bearish stretches.
Historical crypto cycles present that intervals of sustained retail conviction usually precede rebounds, as retail holders soak up volatility whereas institutional contributors undertake extra cautious postures.
Therefore, whereas Armstrong’s message reassures the crypto neighborhood and subtly defends Coinbase’s efficiency amid a turbulent quarter, it additionally exhibits that the retail market is altering from short-term hypothesis to longer-term accumulation.
While costs could stay uneven within the close to time period, these patterns recommend that retail traders are more and more performing as stabilizing forces available in the market, probably serving as a catalyst for restoration when broader sentiment shifts.
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