The Growing Trend of Long-Term Ethereum Investments with 29% Staked Supply
Recent data indicates a noticeable shift towards long-term investment strategies in Ethereum (ETH), as over 19 million ETH is currently held in addresses, a significant increase from the beginning of the year when the figure stood at 11.5 million ETH. This uptrend showcases the mounting confidence among investors regarding the future potential of Ethereum.
Increased Ethereum Accumulation
According to insights from CryptoQuant, there has been a substantial surge in the amount of Ethereum being held in accumulation addresses. Starting at 11.5 million ETH in January 2024, this number has almost doubled by October of the same year.
Analysts predict that this trend will persist and by the year’s end, the accumulated ETH in these addresses could exceed 20 million, further solidifying the growth trajectory.
This rise in long-term positions signifies that major investors and advocates of ETH are strategically building their holdings in anticipation of future advancements. The introduction of Spot ETFs earlier in 2024 has played a role in attracting more mainstream interest to ETH, consequently fueling this accumulation trend. Additionally, the uptick in ETH staking activities has also bolstered the overall accumulation.
Staked Ethereum Approaching 30% of Total Supply
As accumulation continues to soar, staking has emerged as a significant influencer of Ethereum’s market dynamics. Recent data from Dune Analytics reveals that approximately 34,600,896 ETH is currently staked, representing close to 29% of the total ETH supply.
With a considerable portion of ETH now committed to staking contracts, the market is likely to witness reduced selling pressure, potentially offering a supportive environment for the price of Ethereum in the coming days. The limited availability of ETH for trading may contribute to price stabilization or even further appreciation.
Positive Market Dynamics for Ethereum
At present, Ethereum is trading at $2,649, slightly above crucial support levels. The 50-day moving average at $2,476 has proven to be a strong support zone, while the 200-day moving average at $3,022 acts as a significant resistance point.
Breaking above this resistance barrier is vital for Ethereum to sustain a robust upward momentum in the long run.
The Relative Strength Index (RSI) currently stands at 61.61, indicating a moderate bullish trend without entering the overbought region. Similarly, the Chaikin Money Flow (CMF) shows a slight negativity at -0.07, suggesting limited buying activity without signaling a bearish trend reversal.
While Ethereum’s outlook remains positive, surpassing the crucial resistance level of $3,022 is essential for a more substantial upward trajectory. In case of market volatility, the $2,476 level of the 50-day moving average could play a pivotal role as a critical support area.