After months of waiting, Ethereum finally accomplished what investors had 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 act bullish going forward? Or will it react the same way as it did back in May?
Ethereum and $4200
Ethereum’s new all-time high might have come around the same time as other altcoins’ ATH. However, unlike some of the rest, Ethereum’s wasn’t a result of random hype. The altcoin leader has been rising consistently throughout the month and consequently, it breached the long-standing resistance of $4200.
Ethereum price action | Source: Glassnode – AMBCrypto
The hike was also backed by investors who have become very active this month with almost 560,000 addresses operating. The addresses that had been dormant for almost 5 months now are back and are 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 did so throughout the month and some just acted recently.
Ethereum address distribution by volume | Source: Glassnode – AMBCrypto
However, the falling supply on exchanges shows that this selling is constantly being bought back by retail traders.
Surprisingly, these rich cohorts are not long-term HODLers selling, but 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 beginning of this month, 6-12 month holders’ dominance has grown by 10% to 33% and 1-3m holders are now at 8.7% and rising.
Ethereum HODL waves | Source: Glassnode – AMBCrypto
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 need to continue this behavior further since only 0.103% of ETH’s supply is not in profit. The 99.897% of which is in profit is going to mark a market top as high as it did back in May.
Ethereum supply in profit | Source: Glassnode – AMBCrypto
Ergo, hopefully, whatever and whenever corrections take place, it won’t be as bad as 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 fall in the stock market, the Asia-Pacific stock market fell sharply, and US stocks also fell before the market.”