Ethereum seems to be running low on gas As it progresses towards capitulation. Recent weeks have been nothing but a stain on the vision backed by Buterin and his team. The altcoin king fell to a 14-month low over the weekend as the struggle continued.
“far from home”
The Ethereum community was shocked to learn that ETH fell to $1,724 over the weekend. This is its lowest price in the last 14 months which adds to the decline seen in recent months. a sentiment Tweet As discussed recently, Ethereum is showing a “dramatically low” profit-to-loss trading ratio over the weekend. The new 14-month low can be attributed to these lower returns on ETH trading.
But how has it been for Ethereum lately. It is down 10% this week alone as it fluctuates between the $1700 to $1850 range. Metrics are also indicating a collapse of the network.
The daily active addresses data for the Ethereum community is showing a related signal. This metric reached a monthly high of approximately 650,000 active addresses at the peak of the Terra collapse. The sudden rise is responsible for creating panic among investors due to the discounted prices of ETH and volatility in the market. Daily active addresses are currently showing an average of 450,000 this week.
Another metric is indicating a bearish patch for Ethereum. The MVRV ratio (30 days) is currently stuck at 1.24 after underperforming in recent months. This is the lowest value for the index since the beginning of August 2020. This often means that investors are incurring large unrealistic losses, as summarized above.
Now we can move on to whale activity which is turning out to be the last straw for investors. As seen in the chart below sentimentWhales were actively accumulating during earlier price crashes and dumping accordingly. Despite the recent decline, there has been limited accumulation among the major “stakeholders” of ETH.
HODLers continue to double
in a weekly Update By Lucas Outumuro, he highlighted the ETH HODLer addresses during the recent sell-off. According to Outumuro, head of research at IntoTheBlock, addresses that have held Ethereum for over a year have managed to get over 50% of the ETH in circulation.
HODLers balance has turned against the price action. They were reducing their balances from September 2021, but started accumulating in January 2022. Since then, the balance of HODLers has increased after each major crash, reaching more than 50% of all circulating supply for the first time since 2020.
Most of their recent accumulation occurred during the price struggle for Ethereum as it continued to struggle below $1,800. But, he HODLers Despite the recent market struggles, it is taking a long-term outlook on its assets.