The Ethereum [ETH] market has been seeing increased momentum that has been driving the price of the cryptocurrency in the past few months. Amid the active spot market, the active supply of Ethereum has been dropping to new lows. According to the data provider – Glassnode alerts, the active supply of ETH measured on a 3-6 month timeframe has just hit a 5-year low of 5.073 million ETH.
The data provider noted:
? #Ethereum $ETH Active Supply 3m-6m (1d MA) just reached a 5-year low of 5,073,027.965 ETH
Previous 5-year low of 5,075,352.655 ETH was observed on 28 December 2020
View metric:https://t.co/JB9sFi320m pic.twitter.com/PSxYa2WGTp
— glassnode alerts (@glassnodealerts) January 2, 2021
The chart above indicated that the supply had noted a strong peak in 2019 when the price of most cryptos was consolidating between a tight range. Now that we’re in an active bull market, the active supply has been reduced to a 5-year low.
It was a sign of a strong “HODLING” behavior among the Ethereum investors and traders, as the coin marched higher on the charts. The Ethereum charts on TradingView indicated a seven-day consecutive upwards swing in ETH’s price towards the end of the year. This 34% surge within a week pushed its value from $565 to $759 and at the time of writing, ETH was being traded at $734.
Source: CoinStats
As the altcoin holds on to a price level above $700 and as Bitcoin hit a new all-time high over $29k, the chances of the commencement of an alt season appear strong. Meanwhile, the traders were preparing to participate in the altseason that is yet to begin.
This enthusiasm was reflected in the significant increase in the number of addresses holding Ethereum. To bookmark a good end to 2020, the number of addresses holding ETH hit an ATH of over 51.4 million. This value was 34.7 million at the beginning of the year. Whereas the number of non-zero addresses also reached 50.476 million, reflecting the bullishness in the traders’ attitude.