- The ETH number addresses that hold 10+ coins has reached an AATH
- ETH’s mean coin age witnessed some upside after a considerable downfall
If you’ve been following Ethereum closely over the past two week, you might have noticed significant lateral price movement. Although this is indicative of the overall market situation, volatility could be a possibility for ETH this week.
Read about Ethereum’s [ETH] price prediction 2023-2024
A recent Glassnode alert revealed that the number of addresses with 10 or more Ethereum coins has increased to a new address. This means that the number of addresses with ETH coins worth over 10,000 was 343 918.
📈 #Ethereum $ETH An ATH of 343,918 was reached by the number of addresses holding 10+ coins
View the metric:https://t.co/6ggy1nLbSD pic.twitter.com/PqrbNYEMSZ
— glassnode alerts (@glassnodealerts) December 11, 2022
What does this all mean for ETH?
An increase in these addresses confirms multiple facts about ETH. Investors were buying the token and there was a reasonable demand at the press time. An interesting observation to support this observation is the increase in active addresses in recent days.
Source: Santiment
This observation was in line with an increase of addresses holding over 10ETH. An upsurge in Ethereum’s network growth was also observed at around the same time. Interestingly, ETH’s mean coin age regained its upward trajectory after previously achieving some downside.
Source: Santiment
Perhaps this was confirmation that ETH investor chose to hold onto their ETH instead of taking short-term gains. The derivatives market could also provide some clarity on the current situation regarding ETH demand.
Ethereum’s open interest in the derivatives market managed to achieve a sizable uptick in the last five days. This indicated that derivatives demand was slowly recovering. This could also be considered a sign that there is returning volatility in price.
Source: CryptoQuant
It was also worth noting that ETH’s estimated leverage ratio increased during the same time. This was significant because leverage is one of reasons the crypto market is so volatile. Investor confidence is higher when leverage returns.
Expectations galore
ETH’s price action remained relatively unchanged despite the observed changes suggesting that healthy demand was gradually recovering. ETH traded at $1.265, the same price it had traded since the beginning of December.
Source: TradingView
The market’s underpinnings were low volatility and lack of strong demand. However, this stage was temporary in the crypto market. But it was evident that top addresses had anticipated a bullish rebound.
This was reasonable considering that prices were still highly discounted. However, investors need to remember that a bearish shock is still very possible.