After months of waiting, Ethereum has finally accomplished what investors have been waiting for. By hitting $4,361 on the charts, ETH marked a new all-time high and joined the league of cryptos that have already registered new ATHs of their own.
However, the question remains: Will Ethereum continue to be bullish in the future? Or will it react the same way as it did back in May?
Ethereum’s new all-time high may have come at the same time as the ATH of other altcoins. However, unlike some of the rest, Ethereum’s wasn’t a result of random hype. The altcoin leader rose steadily throughout the month and as a result broke through the long standing resistance of $ 4,200.
Ethereum and $ 4200
The hike was also backed by investors who have become very active this month with almost 560,000 addresses operating. Addresses that were dormant for almost 5 months are now back and actively trading.
However, not all of them are actively buying to HODL. Richer addresses i.e. those who are holding more than 100 ETH, have been distributing their holdings. Some of them have been doing this throughout the month and others have been acting recently.
However, the falling supply on exchanges shows that this selling is constantly being bought back by retail traders.
Surprisingly, these wealthy cohorts aren’t long-term HODL sellers, just regular traders. Because most of the ETH HODLers are continuing to HODL their assets and in fact recently joined, investors are also looking to follow suit.
Since the start of this month, the dominance of 6-12 month holders has increased from 10% to 33% and holders of 1-3 million are now at 8.7% and up.
Thus, the idea of HODLing will always play in favor as it stabilizes a price fall, the likes of which were seen multiple times by ETH this year.
However, investors must continue this behavior since only 0.103% of ETH’s supply is not profitable. The 99.897% of which is in profit is going to mark a market top as high as it did back in May.
Ergo hopefully whatever and anytime fixes come up it won’t be as bad as it was in May. After all, at the time of writing, some corrections were around, with ETH falling sharply towards $4,000 on the charts. While Bitcoin fell too, according to journalist Colin Wu,
“This fall may be affected by the stock market fall, the Asia-Pacific stock market fell sharply, and US stocks also fell ahead of the market.”
