As the market entered the red zone for the day, Ethereum continued to stay in the green. In fact, Ethereum’s rise has been quite contained as opposed to many other altcoins that did not display a systematic rally. This could be one of the reasons Ethereum holders are behaving the way they are right now.
Ethereum’s HOLD!
On-chain data is currently displaying 3 to 6 months old ETH in negative amounts, while the 6 to 12 month old supply is presently sitting at a 5-year high.
In addition, the supply of 1-3 months and 1-2 years has all increased. This is indicative of the fact that Ethereum HODLing investors continually throughout this bullish rally.
As a result, some older coins (2-5 years) are maturing and have thus led to an increase in the 5-7 year old cohorts. This section of the supply now contains around 8.92 million ETH, which is over $ 41.8 billion.
This HODLing can primarily be witnessed due to Ethereum’s movement throughout October and November to date. The asset has been one of the few coins in the market to record a steady increase. Up by 69%, ETH not only created a new all-time high 3 days ago, but it also breached the $4500 level.
However, as investors continue to HODLing, network upgrades also take Ethereum to the next level.
The upcoming Arrow Glacier update of Demeber will implement Ethereum Improvement Protocol (EIP) – 4345 which will once again further postpone the difficulty bomb to 10.7 million blocks and will approximately arrive in June 2022
The developers have said that one of the main reasons behind this is the Merge upgrade that the developers plan to roll out before the summer of next year.
The difficulty bomb had been introduced originally, to facilitate the transition to proof of stake (POS). Over time, it acquired the additional property of forcing Ethereum users to upgrade their nodes. This basically means that staying on the old chain will not be an option.
Finally, if investors continue to HODL during the upgrade, so will the bullish rally.
