Ethereum 7% Drop Tests Retail 'Diamond Hands' as Coinbase CEO Sees Upside

Ethereum (ETH) has fallen 6.6% in the last 24 hours, trading around $1,947, as broader crypto markets navigate volatility and macroeconomic headwinds. Coinbase CEO Brian Armstrong pointed to retail investor resilience, saying the exchange’s retail users have been buying the dip and showing net increases in BTC and ETH holdings.

He noted that most customers had native unit balances in February equal to or greater than their balances in December, a pattern framed as “diamond hands.” Not everyone agrees this signals true strength. Critics argue that holding through sharp declines can simply mean enduring significant drawdowns, and community members have raised wider concerns about policy and market access, including calls for yield on stablecoins and changes to accredited investor rules.

Coinbase’s Q4 2025 results showed declining trading volumes amid an 11% drop in market capitalization, yet the exchange continued to see inflows of native units from retail users.

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