Ethereum: Yet another ETH 2.0 deposit contract HIGH ft. holders’ anti-selling narrative
The cryptocurrency market, especially Ethereum, continues to see red signals throughout the ecosystem. However, despite such cautionary signs, stakers & holders continue to build their Ethereum (Merge) castle.
Falling, but not dead
The crypto-industry shed 6.8% of its value within the last 24 hours, with over $300 million positions liquidated in the bloodbath. Ethereum, the market’s largest altcoin, might have suffered the most here.
In fact, at press time, ETH’s value had fallen by 11.7% to trade below $1,500 for the first time in weeks.
Nonetheless, ETH traders did not deter away from their position to HODL the token. Simply put, long-term holders bought into Ethereum, despite the second-ranked crypto asset’s price struggles. These holders continue to see significant profit margins as well.
For instance, the number of addresses holding 10+ ETH hit an all-time high, as highlighted by Glassnode, an analytical firm.
IntoTheBlock further revealed that 56% of all Ethereum investors are currently in profit. This is a significant difference from the numbers recorded in July.
At current prices, only 44% of investors are recording losses, while 4% are in neutral territory, meaning they have bought their tokens around the current price.
This is one of the reasons why ETH’s number of transfers (to exchanges) hit a 1-month low of 21,066.399. Low values of the indicator could suggest holders haven’t been sending in many coins to exchanges at the moment. Depending on whether they are also withdrawing or not, this trend could be either bullish or neutral for the value of ETH on the charts.
Worth noting, however, that caution needs to be maintained before opening a long position for ETH.
What colour is the grass here?
Well, all GREEN, especially for stakers. Considering the pattern of accounts holding 32+ ETH, it’s clear that the community is hungry to get started.
As per Glassnode, number of addresses holding 32+ Coins just reached an 18-month high of 119,563. In fact, the graph attached below seemed to underline the same too.
Furthermore, in anticipation of Ethereum’s upgrade to proof of stake, over 13% of ETH’s supply has been sent into the Ethereum 2.0 deposit contract. As per the latest insights, the Total Value in the ETH 2.0 Deposit Contract reached an ATH of 13,388,454 ETH.
The deposit contract on the Beacon Chain, launched in November 2020, allows ETH holders to lock their assets ahead of the switch. That’s indeed the case here with the world’s largest altcoin.