Ethereum’s price has been rising steadily since the start of February, with ETH approaching the $ 2,000 mark, at press time. However, whenever the market steadily moves in the bullish direction, traders want to know if a price correction will set in after the momentum wears off.
Ethereum’s bull run
In the case of Ethereum, it is important to understand how market participants reacted to this bull run in order to better understand what will happen to the price once an ATH above $ 2000 is established for the coin.
During any bull run there is usually a lot of speculation as to whether traders are long term or short term. When there is an increase in the number of traders looking to capitalize on short-term gains, after the ATH, the market is likely to see a correction. While this has happened in the past for Ethereum, will the same thing happen again after ETH finally goes above $ 2,000?
Interestingly, a review of a few market indicators can prove useful in determining the nature of the Ethereum market today. According to data provided by Glassnode, active supply (1 year – 2 years) fell to its lowest level in 4 years, the same heralding a rise in prices, signaling the constant presence of a strong bullish sentiment in the case present.
However, while this is only for the continuation of the price trend, subtle changes can occur within the demographic diversity of Ethereum investors and traders.
Data from Glassnode also highlighted two interesting developments. Firstly, the number of addresses holding more than 1000 coins hit their lowest level in 3 years, while in the case of small addresses (i.e. above 0.01 ETH), c the reverse has happened. In addition, according to the data, the number of addresses holding more than 0.01 coins reached an ATH of 12,195,952.
Evolution of Ethereum
This is an interesting development, suggesting that if large accounts are launching sales in the highly profitable market Ethereum currently finds itself in. ETH will again be subject to price corrections which tend to hamper its uptrend.
At the time of writing, Ethereum was priced around $ 1,915, with the crypto finding some support just above the $ 1,900 mark. This also ensures that the overall profitability of the part is rather high. In fact, approximately 53,848,440,762 addresses were in profit at the time of publication – another historic high in Ethereum’s history.
Will it repeat itself? Well, one can argue in the affirmative. However, if the hodlers continue to keep their coins in cold storage despite the extremely positive gains that can be made in the short term ETH market. So cryptocurrency may soon be heading towards finding prices above $ 2k. ETH remains immune to massive prices. drops.
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