Ethereum’s HODLers Increase their Holdings
A recent report highlights that Ethereum’s HODLers have witnessed significant growth in their ownership of this popular altcoin. Currently, their holdings constitute 70% of the total supply.
Although Bitcoin also demonstrates a strong presence of HODLers, with almost 70% of its coins held by long-term investors, Ethereum’s recent surge beyond this threshold indicates a rising conviction within its community. HODLers play a crucial role in maintaining the stability and well-being of any blockchain network, as they are known for retaining their assets even during periods of market volatility and price fluctuations.
A Positive Indicator of Confidence in Ethereum’s Long-Term Potential
Ethereum’s ability to attract and retain long-term investors signifies a high level of confidence in the cryptocurrency’s long-term prospects. Despite Ethereum’s price yet to reach the same heights as Bitcoin, experts speculate that its time to shine brightly might be on the horizon.
The altcoin market, including Layer 2 (L2) projects, has been witnessing an impressive trajectory, potentially signaling an upcoming rally for Ethereum.
Closely Examining Ethereum’s Dormancy
The concept of dormancy entails the calculation of the ratio between coin days destroyed and total transfer volume. This offers insights into the sentiment among long-term Ethereum holders.
Recent data on Ethereum’s dormancy indicates high values, suggesting increased activity among older coins. However, the latest update demonstrates a decrease in the dormancy metric to 67.61, indicating that older coins have predominantly remained unspent.
This reduction in dormancy could be seen as a positive signal for Ethereum’s short-term future, potentially paving the way for a price rally.
Positive Technical Indicators Suggest a Bullish Trend
The 4-hour ETH/USD chart’s Exponential Moving Average (EMA) presents a bullish signal, with the blue 50-day EMA crossing over the yellow 200 EMA.
As a result, investors considering long-term Ethereum holdings may find an opportunity to purchase the digital asset at a discounted price.
Market analysts are closely monitoring the Aroon indicator, which provides valuable insights into Ethereum’s short-term price movements.