Lucas Outumuro, head of research at IntoTheBlock, says that over 50% of all Ethereum in circulation now addresses ETH holdings for over a year.
A leading crypto analytics firm says long-term holders are buying Ethereum (ETH) despite the price struggle of the second-ranked crypto asset.
Citing this:
“Addresses that have been holding ETH for more than 1 year (the ‘holders’) have managed to acquire more than half of all Ether in circulation. Holder balances have reversed price action. Holders from September 2021 were reducing their balances, but began to accumulate in January 2022. Since then, holders’ balances have increased after each major crash, reaching more than 50% of all circulating supply for the first time since 2020. Has been.
Outumuro further explains that:
“Despite the grim near-term picture, the longer-term players are doubling down. On a similar note, a16z announced its $4.5 billion crypto fund, the largest crypto fund ever created in the history of crypto. These investments typically target time frames in decades, not weeks. Ultimately, it will take time for the vision of crypto to be realized and regardless of the short-term uncertainty, long-term market participants keep their faith.”
Analysts noted that Ethereum saw significant exchange inflows over the past week, indicating a bearish trend. While Ethereum is currently trading at $1,731, down more than 11% over the past seven days.
It’s not all bearish indicators for King Crypto as it and major smart contract platform Ethereum (ETH) are both dipping into “historic buying territory”. sentiment,
Bitcoin’s average profitability level is the most negative since late January, and Ethereum’s lowest level since early March. Both are very close to dipping into historical buying zones, where prices are highly likely to bounce back.