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Ethereum Indicates Accumulation Pattern per This Metric, Data Shows

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Wed, 03/23/2022 - 15:05
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Tomiwabold Olajide
This indicator enables estimation of the long-term holders' portion
Ethereum Indicates Accumulation Pattern per This Metric, Data Shows
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According to data provided by Santiment, despite volatility on ETH, the mean Coin Age of ETH continues to grow steadily, indicating an accumulation trend. Mean Coin Dollar Age is the average age of all coins/tokens on the blockchain weighted by the purchase price. This indicator enables estimation of the Long-Term Holders' portion.

This might also suggest large Ethereum addresses are still accumulating funds on the market despite the suppressed performance of the cryptocurrency.

Per CoinMarketCap data, at a present price of $2,980, Ethereum has dropped by almost 50% from its all-time highs. The reasons behind it are the general correction on the market and risk-off tendencies on the financial markets‌.

Other bullish indicators

Ethereum is facing one of the largest exchange outflows, with almost 151,000 withdrawn from exchanges on March 23, as IntoTheBlock data suggests. The on-chain analytics noticed that ETH reserves on centralized exchanges have been decreasing rapidly in 2022, adding up to over 1.08 million.

As U.Today previously reported, more than 10 million ETH have already been moved from the circulating market supply as ETH staking grows. Eight figures of Ether are now deposited into the contract, which allows receiving stable income with a certain amount of Ether that gets locked for a minimum of a three-month period. As Coinbase previously reported to its users, after a full switch to a proof-of-stake network, the APY is going to increase from 5% to 12%.

Ethereum bulls look to surmount a significant barrier at $3,000 as the community prepares for the merge of the Ethereum mainnet with the proof-of-stake Beacon Chain. Last week, Ethereum developers successfully tested the long-awaited merge of the programmable blockchain's proof-of-work and proof-of-stake chains, dubbed Eth 2.0.

With the merge test run completed successfully, researchers expect the mainnet launch to happen by the end of June. Observers foresee increased institutional adoption once the Eth 2.0 upgrade is complete.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.