ETH Shows Positive Signals as Short-Term Holders Increase

As Ethereum's price experiences a surge, interest in Ethereum NFTs dwindles. ApeCoin faces a decline in overall interest, with Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) being notably affected.

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As the price of Ethereum surpasses $4,000, most investors are expecting the next target to be $5,000. Data from CoinMarketCap shows support for this view through the rise in Ethereum’s price, which is up more than 8% in the last seven days.

STH is reaching new highs

Ethereum’s price is stabilizing near $4,000, reaching $3,987.46 and the market capitalization is over $4789 billion. Meanwhile, IntoTheBlock published an analysis on TradingView, revealing that the number of short-term ETH holders is increasing.

This often happens during bull market periods, when new users join the network and actively participate. Conversely, during bear market periods, the number of short-term ETH holders typically dwindles, leaving only long-term holders.

Screenshot 2024 03 12 at 2.07.35%E2%80%AFPM

Source: TradingView

The number of people trading Ethereum has increased significantly recently, approaching the peak of the previous bull cycle (as shown by the light red arrow). The last time this number peaked, Ethereum experienced a significant price increase, taking it to an all-time high. If history repeats itself, this could signal a new bull cycle for ETH.

With these optimistic data, it is important to look at Ethereum’s metrics to assess the sustainability of the uptrend.

Related: Ethereum Fees Surge as Dencun Upgrade Approaches

What can we expect from Ethereum?

Our analysis of data from Glassnode shows that Ethereum’s Network Value to Transactions (NVT) ratio has decreased significantly at this time. When the ratio falls, it often signals that the asset is undervalued, increasing the likelihood of a price rally.

Screenshot 2024 03 12 at 2.12.02%E2%80%AFPM

Source: Glassnode

Data from CryptoQuant also indicates that ETH net deposits on exchanges are low compared to the average over the past seven days. This is a positive sign because it shows that selling pressure is decreasing, creating favorable conditions for price increases.

In the market, buying sentiment is prevailing among US investors, as shown by Coinbase Premium showing green. However, in Korea, the selling sentiment continues, as evident by Korea Premium showing in red.

Screenshot 2024 03 12 at 2.15.38%E2%80%AFPM

Source: CryptoQuant

To check the likelihood of the next bull run, a look at ETH’s daily chart is important. It is worth noting that although the data looks positive, technical indicators tell a different story. The relative strength index (RSI) is in the overbought zone, and Chaikin money flow (CMF) is also showing signs of decreasing. These indicators are signs that the ETH bull run may be coming to an end.

Ethereum TradingView

Source: TradingView

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