Connect with us
Active Currencies 14309
Market Cap $2,518,327,004,216.30
Bitcoin Share 51.77%
24h Market Cap Change $0.35

Ethereum bulls awaken from years of slumber; can ETH avoid a bearish pivot

2min Read

Share this article

  • Ethereum addresses lying dormant for years recently got active.
  • The total number of ETH moved was over 22,000, which sparked a lot of speculation.

While Ethereum [ETH] investors have been watching the token’s sluggish growth, some bulls have started to stir, sparking rumors about what will happen next. The rally came at a time when the broader market and the price of ETH have both been quite underwhelming. What can investors anticipate?


Read Ethereum’s [ETH] price prediction 2023-2024


Ethereum bulls awaken

On 19 December, PeckShieldAlert published an intriguing post on its page describing how two addresses that were inactive since October 2018 suddenly came to life. The addresses sent 22,982 ETH in total, which at press time, was worth over $27 million, to new addresses.

Given how long these addresses had been inactive, there were questions about what these transfers might indicate.

 

Transfers of 13,103.99 ETH and 9,878 ETH allegedly originated from the Genesis and Poloniex exchanges, respectively. The PeckShield flowchart made it possible to track ETH’s history in real-time.

ETH’s price fluctuated between roughly $190 and $230 when the wallets were last active.

The current state of ETH

The support range seen on the ETH daily timeframe chart between 1 December and 13 December was roughly $1,200. A lower support had developed following the almost 7% decline seen on 16 December, and the asset was trading at $1,180 at press time.

Since September, ETH was yet to maintain a break above the short Moving Average (yellow line). This meant that the yellow line had actually acted as a resistance at certain points during its movement.

Ethereum price move

Source: TradingView

No sell-off in the short-term, but possible in the long-term

According to CryptoQuant’s Exchange Netflow statistic, there were more ETH transactions leaving exchanges than entering them. This could indicate that holders were hesitant to sell at the price, meaning that a potential sell-off in the near term is not happening. CryptoQuant, however, forecasted a potential sell-off in 2023.

Due to the impending Shanghai upgrade, there may be a sell-off since investors will be allowed to remove their stakes once it is finished, which might impact ETH’s price.

Ethereum exchange flow

Source: CryptoQuant

Investors at an improved loss

In recent months, the price of ETH fell short of the spectacular run it experienced in 2021. The Market Value to Realized Value (MVRV) Ratio revealed that investors were holding at a loss over the previous 365 days. Owners of ETH suffered a loss of more than 31% at the current price.

Even though it was holding at a loss, the present percentage was better than it had been around November.

Ethereum MVRV

Source: Santiment

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.