Ethereum HODLers Surpass Bitcoin: What’s Next?
Long-term Ethereum (ETH) holders have surpassed Bitcoin (BTC) in terms of the amount of coins owned, according to blockchain analytics firm IntoTheBlock. The data shows that since December 1st, ETH HODLers have held 70% of the total supply of ETH, surpassing BTC’s long-term holder percentage. This milestone indicates strong conviction among ETH HODLers regarding the cryptocurrency’s long-term potential.
The increase in ETH held by HODLers is significant for the health of the Ethereum blockchain, as it demonstrates resilience and confidence in the face of market volatility. This milestone also aligns with predictions that ETH may outshine Bitcoin in the near future.
While the price action of ETH is not yet at Bitcoin’s level, the recent performance of altcoins, including Layer 2 projects, suggests that an ETH rally could be on the horizon. As of now, ETH is priced at $2,290, representing a 3.69% increase in the last seven days.
Analysts are also looking at Ethereum’s Dormancy metric, which measures the sentiment of long-term holders. The Dormancy value has been high, indicating an increase in transactions by older coins. If this metric remains low, it could indicate a potential rally for ETH in the near term.
Technical analysis of the ETH/USD chart also suggests a bullish trend in the mid to long term. The crossover of the 50-day Exponential Moving Average (EMA) and the 200 EMA indicates a favorable position for ETH. Additionally, the Aroon indicator provides insight into short-term price movements, with the Aroon Up currently at 21.43% and the Aroon Down at the zero midpoint.
In conclusion, the milestone of Ethereum HODLers surpassing Bitcoin holders is a positive sign for the future of ETH. While short-term holders may see potential gains before the long-term rally, caution is advised as confirmation of the bullish thesis may take some time.