The successful rise of Ethereum has injected new vitality into the market, but the decrease in the supply of exchanges has increased people's interest. Long term holders seek profitability in the face of challenges
The successful rise of Ethereum has injected new vitality into the market, but the decrease in the supply of exchanges has increased people's interest. Long term holders seek profitability in the face of challenges.
- ETH prices hover around $1890, slightly approaching the $1900 price range.
- The supply of ETH on the exchange has continued to decline, reaching a historic low.
Ethereum [ETH] showed a sideways trend for several consecutive weeks, and finally declined. However, it has embarked on an upward trajectory and injected new vitality into the market. However, in the process of this surge, the available supply of Ethereum on the exchange has been steadily decreasing, which adds an interesting turning point to the ongoing story.
Ethereum maintains the bull market trend
Looking at the daily time frame chart of Ethereum, we found an interesting journey, which started around June 15, when it began to rise. Since then, its cumulative value has increased by over 16%.
As of the time of writing this article, Ethereum hovered around the US $1890 mark, with a slight decline in value.
However, on June 23rd, the stock closed trading with a 1.10% increase. Although it has not yet regained the $2000 price range, exciting developments have begun as it successfully breaks through the resistance posed by the bearish moving average (yellow line) near the $1820 price range.
This breakthrough indicates a positive shift in popular trends.
The price trajectory at the time of press release also pushed Ethereum into a bull market, as evidenced by its Relative Strength Index (RSI). As of the time of writing, the RSI line is above 60, indicating a strong bullish trend.
Ethereum fell on the exchange
Although Ethereum has made brave efforts for recovery, a fascinating phenomenon still exists - the supply of ETH on the exchange is decreasing. Santiment's data shows that the percentage of exchange supply to total supply has reached a historical low.
As of the time of writing this article, this supply has dropped to about 9.1%, which is the lowest level since the birth of Ethereum.
The decline in supply began as early as January, but it wasn't until May that the sharp decline became apparent. This downward trend has continued until now, further exacerbating the Scarcity of Ethereum on the exchange.
Profitability of long-term ETH holders
After checking the profitability of Ethereum's long-term holders, it is found that despite the recent upward trend, it has not yet translated into the profitability of these holders.
As of the writing of this article, the market value to realized value ratio (MVRV) for the two-year period has dropped below zero, and as of the time of publication, it was -10%. This indicates that individuals holding ETH during this period were in a state of loss.
However, there is still a glimmer of hope. The continuous growth of value may drive these holders into more profitable areas, thereby reducing their losses as of the time of publication.
In addition, according to data provided by CoinGlass, traders have optimistic expectations for the upcoming price surge. As of the time of writing, CoinGlass's financing interest rate is positive.
This is an important indicator of the positive sentiment of traders who actively hold long positions.
It is worth noting that price increases may further enhance the enthusiasm of fund rates and may attract more traders to establish long positions. On the contrary, a decrease in prices will result in a large number of positions being liquidated.
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