After hitting highs of $ 4,350 recently, Ethereum (ETH) has dropped 9.4% in the last 24 hours to trade at $ 3,280 at the time of writing, according to CoinMarketCap.
The cryptocurrency market has seen a sharp drop based on Elon Musk’s tweets, which have created a headwind for Bitcoin.
However, Ethereum hodlers are showing bullish signs, as acknowledged by Messari Crypto researcher Mira Christianto. She explained :
“ETH was down -15% this week without a rebound in currency inflows. Decentralized exchanges are also not seeing a significant volume increase. The Hodlers are stubbornly optimistic. “
Whenever cryptocurrencies go off exchanges, this means that a culture of bundling has started because the coins are usually transferred to cold warehouses after that.
Market analyst Joseph Young echoes the sentiments of Christianto, who recently noted that the supply of ETH on crypto exchanges was continually running out.
Hodling Ethereum is a favored strategy
According to a recent report by on-chain metrics provider Glassnode, Ethereum coins between one and six months old are progressively increasing in thickness. This suggests that accumulating ETH accumulated in the early bull market is still a favored strategy.
Ethereum hodlers have also been turning a profit on the basis of a notable bull run, which has triggered new all-time highs (ATHs).
Google searches for Ethereum are twice as high as in 2017
According to crypto data provider Documenting Ethereum:
“Search volume for Ethereum on Google is now double that of 2017.”
Hence, it shows the growing interest in the ETH network. More investments continue to trickle into the Ethereum 2.0 deposit contract because it currently accounts for 4% of the ETH supply.
ETH 2.0 is seen as a game changer that seeks to transition the current proof-of-work consensus mechanism to a proof-of-stake framework, which is touted as more environmentally friendly and cost-effective.
The proof-of-stake algorithm enables block confirmation to be more energy efficient and requires validators to stake Ether instead of solving a crypto puzzle.
Additionally, Ethereum’s transition to proof of stake will allow the blockchain to see updates, including sharding, which would improve scalability.
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