Journalist
Posted:
- ETH HODLers were not concerned about the altcoin’s price fluctuations.
- The short- and long-term technical outlook suggested a bullish move for ETH.
Ethereum for the long term [ETH] holders refrained from liquidating their holdings while helping the coin reach a new milestone, IntoTheBlock noted.
According to IntoTheBlock, the amount of ETH owned by HODLers has now reached 70% since December 1.
The data also means that the altcoin has surpassed Bitcoin’s [BTC] position per same metric. For BTC, the number of coins held by long-term holders was almost 70%, but ETH still surpassed this, AMBCrypto found.
It is important to mention that the blockchain analysis company came to this conclusion after examining the BTC/ETH ratio.
The amount of $ETH ownership of long-term ottomans reached a record of more than 70% in December pic.twitter.com/znKGxTAkvU
— IntoTheBlock (@intotheblock) December 24, 2023
HODLers are essential to the health of any blockchain. This is because they rarely sell their coins regardless of volatility or price performance.
Thus, the increase in ETH owned by HODLers implies that there is enough belief that the long-term potential of the cryptocurrency was worth the wait.
However, it is not surprising that the record came in December. This is because there are predictions that ETH’s time to surpass Bitcoin is near.
While the price action has not yet reached Bitcoin levels, the impressive array of altcoins, including L2 projects, suggests that an ETH rally could be close.
At the time of writing, the price of ETH was $2,290, up 3.69% in the past seven days. As for long-term price potential, AMBCrypto decided to check Ethereum’s Dormancy.
Dormancy is the ratio of the number of coin days destroyed to the total transfer volume. The metric provides insight into the sentiment of long-term owners.
Source: Glassnode
Until December 23, Ethereum’s dormant period showed high values. This suggests an increase in transactions with older coins. However, at the time of writing, the statistic had dropped to 67.61. This implies that older coins have remained largely unused.
If dormancy remains lower, ETH could have a good chance of rallying in the near term.
According to the 4-hour ETH/USD chart, the Exponential Moving Average (EMA) showed that the coin could be bullish in the medium to long term. This was because the 50-day EMA (blue) had crossed the 200 EMA (yellow).
This position usually favors a bullish trend.
So, investors who plan to hold ETH for a longer period of time may have an opportunity to buy at a discount. Another indicator to consider is the Aroon indicator. Results from the Aroon give an idea of what ETH could do in the near term.
Realistic or not, here is the market cap of ETH in BTC terms
At the time of writing, the Aroon Up (orange) was at 21.43%, while the Aroon Down (blue) was at zero.
Source: TradingView
So short-term holders may not have to wait for the long-term ETH rally before they can make potential gains. However, traders may need to be cautious as it may take some time for the bullish thesis to be confirmed.