Just now, the data analysis platform IntoTheBlock posted a tweet featuring a graph that showcases the proportion of long-term holders for both Ethereum and Bitcoin. Accompanying their tweet was an illustration depicting the “holder ratios” of these significant cryptocurrencies.
At present, approximately 74.7% of Ethereum wallets are holding their coins for the long term, which is more than in Bitcoin wallets. According to IntoTheBlock, this represents a notable shift in the crypto market, as Bitcoin has usually been seen as the main choice for long-term investments.
This graph showcases the proportion of long-term investors for Ethereum and Bitcoin. At the moment, a majority of Ethereum wallets (74.7%) are held by long-term investors, which is notably higher than Bitcoin. This pattern might persist until Ethereum gets close to its maximum historical value, at which point investors may choose to cash out their profits.
— IntoTheBlock (@intotheblock) January 9, 2025
Lately, the pattern indicates a significant change in Ethereum’s investing community, as there’s been an increasing preference towards long-term investment over quick profit-taking or speculation.
The reason behind this trend could be linked to several causes, one being staking, which motivates asset owners to keep their holdings secured for longer durations, thereby reducing the urge to sell. The Shanghai/Capella update, commonly referred to as Shapella, enabled Ethereum staking withdrawals on April 12, 2023. This significant upgrade signifies a crucial step in the evolution of the Ethereum network, finalizing its shift from proof of work to proof of stake.
Additionally, there has been substantial expansion within Ethereum’s environment. This growth is driven by areas such as Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Smart Contracts, which have led to a surge in interest for the platform.
Ethereum price action remains key determinant
As a researcher, I’ve been observing a robust long-term holding trend in Ethereum. However, recent insights from IntoTheBlock hint at potential shifts in this behavior as Ethereum’s price nears its previous record high. Historically, crypto investors have a tendency to cash out their profits when prices reach significant landmarks.
According to IntoTheBlock’s analysis, it seems that this current upward trend in Ethereum is expected to persist until Ethereum reaches its record high price, at which point many investors may decide to cash out their profits. Nevertheless, the long-term holding pattern suggests that most investors appear to be invested in Ethereum’s future growth prospects.
Currently, as I’m typing this, Ethereum has decreased by 1.35% over the past 24 hours to reach a price of $3,301. This decline is part of a broader market sell-off in cryptocurrencies. If it continues today, Ethereum could mark its fourth consecutive day of losses, having peaked at $3,746 on January 6th.
During yesterday’s trading, the slide caused a drop in support near the Daily Simple Moving Average (SMA) 50 at approximately $3,580, reaching a low of $3,206. At present, the Ethereum price hovers around this level.
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2025-01-09 18:12