The number of ETH addresses with more than 10 coins reached an ATH The average coin age of ETH was slightly upward after a significant pullback
If you have been watching Ethereum closely over the past two weeks, you may have noticed a lot of lateral price movements. While this reflects the current general state of the entire crypto market, ETH could experience some volatility this week.
Read about Ethereum [ETH] price forecast 2023-2024
According to a recent Glassnode alert, the number of addresses with 10 or more ETH coins has increased to a new ATH. This means that the number of addresses with an amount of ETH over 10,000 was 343,918.
View stats: https://t.co/6ggy1nLbSD pic.twitter.com/PqrbNYEMSZ
— glassnode alerts (@glassnodealerts) December 11, 2022
What does it mean for ETH?
An increase in these addresses confirmed several things about ETH. There was decent demand for the cryptocurrency at the press level and investors rallied for the token. One notable observation that could support this observation was the increase in active addresses in recent days.
The observation matched the increase in addresses by more than 10 ETH. Around the same time, an increase in Ethereum network growth was also observed. Interestingly, the average coin age of ETH regained its upward trajectory after previously entering a downward trend.
Perhaps this was confirmation that ETH investors were choosing to hold onto their ETH rather than take short-term profits. In addition, the derivatives market may shed some light on the current situation in terms of ETH demand.
Ethereum’s open interest in the derivatives market managed to surge significantly over the past five days. This confirmed that demand for derivatives was gradually recovering. In addition, this move could be seen as a sign of recurring price volatility.
It was also worth noting that ETH’s estimated leverage ratio increased over the same time. This was important because leverage is one of the reasons why the crypto market is so volatile. The return on leverage supports higher investor confidence.
A head full of expectations
ETH’s price action remained relatively unchanged despite the observed changes suggesting a gradual recovery of healthy demand. On Dec. 11, ETH was trading at $1,265, which was still within the same narrow range it’s been trading in since the beginning of the month.
Low volatility and a lack of strong demand were the dominant pillars of the market situation. But this was a temporary phase in the crypto market. However, it was clear that top addresses expected a bullish recovery.
This was a reasonable expectation given that prices were still heavily discounted. But investors should note that the possibility of a bearish shock was still very likely.
This post ETH could start the week on an optimistic note and these observations are to thank
was published first on https://ambcrypto.com/eth-could-start-the-week-on-a-bullish-note-and-these-observations-are-to-thank/