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Ethereum’s growing HODLer dominance over Bitcoin

TL;DR

  • Ethereum HODLers now hold 70%, surpassing Bitcoin.
  • Reduced Dormancy hints at a potential price rally.
  • Technical indicators favor Ethereum for long-term investors.

Ethereum (ETH) has achieved a significant milestone in the cryptocurrency market as its long-term HODLers now hold more of the digital asset than Bitcoin (BTC). Data from blockchain analytics firm IntoTheBlock reveals that ETH’s HODLers have reached a holding level of 70% since December 1st, surpassing Bitcoin by a narrow margin.

A milestone for Ethereum

A recent report revealed that Ethereum‘s HODLers have significantly increased their holdings of the popular altcoin, with their ownership now representing 70% of the total supply. This noteworthy achievement is particularly significant as it places Ethereum ahead of Bitcoin when comparing the amount held by long-term investors.

While Bitcoin also boasts a strong HODLer presence, with nearly 70% of its coins held by long-term investors, Ethereum’s ascent past this threshold indicates a growing conviction among its community. HODLers are essential to the stability and health of any blockchain network, as they are known for their tendency to hold onto their assets regardless of market volatility or price fluctuations.

A signal of confidence in Ethereum’s Long-Term potential

Ethereum’s ability to attract and retain long-term investors suggests a high confidence level in the cryptocurrency’s long-term potential. Despite Ethereum’s price not yet reaching the heights of Bitcoin, many experts have speculated that its time to outshine Bitcoin is drawing near.

The altcoin market, including Layer 2 (L2) projects, has been on an impressive run, indicating that an Ethereum rally could be on the horizon. Ethereum’s price stands at $2,290 at the time of writing, reflecting a 3.69% increase over the past seven days.

Analyzing Ethereum’s dormancy

Analysts have been closely monitoring its Dormancy metric to gain further insight into Ethereum’s long-term price potential. Dormancy is calculated as the ratio of coin days destroyed to total transfer volume, offering a glimpse into the sentiment of long-term Ethereum holders.

Recent data on Ethereum’s Dormancy indicated high values, suggesting an increase in the activity of older coins. However, as of the latest update, the Dormancy metric has decreased to 67.61, signaling that older coins have largely remained unspent.

This reduction in Dormancy could be interpreted as a positive sign for Ethereum’s near-term future, potentially paving the way for a price rally.

Technical indicators point to a bullish trend

On the technical side, Ethereum appears to be positioned for a bullish trend in the medium to long term. The Exponential Moving Average (EMA) on the 4-hour ETH/USD chart has shown a bullish signal, with the 50-day EMA (blue) crossing over the 200 EMA (yellow).

This EMA crossover is typically seen as favorable for a bullish market outlook. As a result, investors considering holding Ethereum for an extended period may find an opportunity to purchase the digital asset at a discount.

Market analysts have been closely watching the Aroon indicator, which provides insights into Ethereum’s short-term price movements. The Aroon results could offer valuable guidance for traders and investors seeking to make informed cryptocurrency market decisions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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