Owing to China’s latest crackdown announcement, the entire crypto-market has been on a slippery slope over the last few days. Negative price reactions on the charts were almost inevitable. However, four days down the line, the situation seems to have cooled off somewhat. In fact, most coins are desperately trying to get back on track.
Ethereum’s price has, however, dipped by an additional 5% over the last 24 hours. Nonetheless, there seemed to be a silver lining, at the time of writing.
Buying bags becoming hefty
Until recently, institutions were washing their hands of major assets, including Ethereum. Indeed, the digital asset products associated with these coins have experienced substantially high cash outflows. Market participants from different gamuts, however, encashed the recent FUD situation and ended up buying the dip. In fact, institutional and retail buying have been going hand in hand lately.
CoinShares’ weekly report highlighted that digital asset investment products witnessed inflows worth $95 million last week. Ethereum, along with Bitcoin, led the wave of influx. As of May of this year, Ethereum’s weekly feeds have been largely negative.
However, the narrative began changing this month, one that only solidified last week as Ethereum inflows rose to $29 million.
At the same time, the amount of Ether wagered on 2.0 has also increased, despite the recent 6% drop in wagering rewards. The number of staked tokens was, in fact, at its ATH of 7.7 million, at the time of writing. This basically underscored the fact that HODLers are quite happy with the passive income they earn.
In effect, the same has acted like a demand driver.
In addition, the last active supply quantity [3y-5y] just hit a 21-month low. As coins become less active, they’re considered to be illiquid and are more likely to remain in cold storage. Looking at the larger trend, it can be inferred that there is no spot selling pressure.
Additionally, the number of addresses HODLing more than 1k coins just touched a 1-month high. The size of the farms clearly shows that the big players, including whales and institutions, go fetch their nets and buy the dip.
Retail investments have also been increasing of late. The increase in the number of HODLers with more than 0.01 ETH bears witness to this.
This buying pressure is all that the Ethereum market needs at this point. If the aforementioned trend continues for the near future, the price of Ethereum would eventually react positively.
