Increase in Ethereum Hoarding as Investors Anticipate Short-Term Price Surges: CQ
Rewritten Article:
Ethereum, the second-largest cryptocurrency by market cap, appears to be catching a wave of optimism as long-term holders up the ante. With on-chain data showing a spine-tingling trend, these investors are steadfastly strengthening their positions, unfazed by the choppy waters of recent price fluctuations.
A fresh report from CryptoQuant discloses that addresses hoarding Ethereum without offloading large amounts have beefed up their stashes by a striking 22% in under two months. This points to a palpable rise of "structural conviction" among investors in the Ethereum ecosystem.
A Deep Dive into Holder Habits
In an analysis by CryptoQuant's Carmelo Alemán, since Ethereum hit a cycle peak of $4,107 on December 16 last year, the crypto has been on a bearish roll. This bear market finally pushed long-term holders into the "unrealized loss territory," as Ethereum's value sunk to $1,866, dipping a smidgen below the Realized Price of $2,026.
The Realized Price, as described by experts, is a measure that indicates the average price at which all coins in circulation were last transacted on-chain. It's used to shed light on the historical cost basis of investors.
Since March 10, the volume of Ethereum in the hands of accumulating addresses has swollen from 15.53 million tokens to 19.03 million tokens. The slump in prices paved the way for investors to snap up more Ethereum, driving the collective realized price to a measly $1,980 by May 3. This effectively shows a doubling down on the belief that Ethereum is about to pop out of its price range.
"ETH investors show a clear commitment to the asset, project, and ecosystem," wrote Alemán. "Their on-chain behavior signifies deep-seated conviction and clear expectations of a short-term price surge."
A Mixed Bag Amid Optimism
The resurgence of bullish sentiment appears to align with technical signals and the general mood captured across social media. Well-known crypto analyst Michaël van de Poppe recently highlighted the fact that Ethereum's price chart is shaping up to look like a classic falling wedge, usually a harbinger of bullish breakouts.
"ETH is snuggling into a spot before a substantial price jump," he stated, outlining converging trend lines and dwindling trading volumes as signs of simmering volatility. "The liquidity's there for the taking—it just needs a buzzworthy news item to kick things into high gear."
Moreover, Ethereum has rocketed 10% in the last couple of weeks, reclaiming the $1,800 level. Despite this upward swing, its performance in the past year remains less than impressive, with its price dipping a whopping 42% in that timeframe.
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- The surge in interest for Ethereum, the second-largest cryptocurrency by market cap, is reflected in a significant increase in long-term holders boosting their Ethereum positions, as indicated by on-chain data.
- CryptoQuant's report discloses that the amount of Ethereum held by addresses without selling large amounts has grown by 22% in under two months, suggesting a rise in "structural conviction" among investors.
- As Ethereum's price dipped below its Realized Price, long-term holders have been accumulating more Ethereum, suggesting a belief in a potential price surge in the near future, as described by CryptoQuant's Carmelo Alemán.
