As Ethereum gets closer and closer to giving up, it seems to be running out of steam. The things that have happened in the last few weeks have ruined the plan that Buttering and his team came up with Bitcoin Motion. The most popular cryptocurrency hit a price level over the weekend that hadn’t been seen on the market in 14 months.
People in the Ethereum community were shocked when they heard that the price of ETH had dropped to $1,724. This is the lowest number it has been in the last 14 months, which fits with the recent downward trend.
In a recent tweet, Santiment said that Ethereum’s profit-to-loss transaction ratio has been “dramatically low,”, especially over the weekend. This new 14-month low happened earlier today, which could be why ETH transactions aren’t making much money.
But this is what happened recently with Ethereum. It has been anywhere from $1700 to $1850 this week. It has gone down by 10 percent this week. The measurements also let us know where the network isn’t as strong.
The data on daily active addresses shows some worrying patterns, which is scary for the Ethereum community. During the worst part of the Terra collapse, when over 650,000 addresses were still being used each month, this measure was at its highest point.
The fast rise could be because the market is so unstable and ETH has become so cheap. Investors were worried about these things, which led to the sudden rise. At the moment, there are an average of 450 thousand active addresses per day for this week.
A second sign shows that Ethereum is going through a time when prices are going down. The MVRV Ratio (30 days) hasn’t changed much in the last few months, so it has stayed at 1.24. The index hasn’t been this low since the beginning of August 2020.
This usually means that investors have big losses they haven’t yet taken into account. As we talked about in the last part, this is the case here.
We can move on to the next topic, which is giving investors the last straw, now that we’ve talked about whale activity. The Santiment data below shows that whales have been buying stocks aggressively when the market is down and then selling them when it’s time. Log on to Bitcoin smart for crypto trading, an official website that simplified trading.
Even though the price of ETH has been going down recently, the main “stakeholders” of ETH have been slowly adding to their holdings.
Those who stick around keep making big bets.
In his weekly newsletter, Lucas Outumuro wrote about the ETH HODLer addresses during recent sell-offs. This gave us more information about who these people were.
Outubro, who is in charge of research at IntoTheBlock, says that addresses that have held Ethereum for more than a year have more than half of all the ETH that is in circulation right now.
The HODLers’ balances have gone down, while the price has gone up. They had been spending down their balances since September 2021, but in January 2022, they started saving again.
Since then, the total balance held by HODLers has grown with every big price drop, and it just passed 50% of the total supply for the first time since 2020.
Most of their recent accumulation happened when Ethereum’s price was low and it was fighting to stay below $1,800. Still, this fight is going on.
People who hold long-term positions (HODLers) are still thinking about how much their holdings will be worth in the long run, even though the market is in turmoil right now.
Conclusion
If the market closes at less than $1956, there could be short-term drops. If the price goes up again and stays above the exponential moving average for 20 periods, bulls should buy. In this case, the level to make a profit will be somewhere around $2,180.
Investors and traders should also keep an eye on how Bitcoin moves. Even more so when you consider that there has been a 96 percent link between ETH and the king currency over the last 30 days.
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