Ethereum enthusiasts are making a significant impact in the world of cryptocurrency, as evidenced by the substantial increase in coin acquisition. Recent data from CryptoQuant shows that the amount of Ethereum stashed in long-term holding addresses has almost doubled, reaching a solid 19 million ETH from January’s 11.5 million.
This surge in Ethereum holdings indicates a growing faith in the future of the cryptocurrency, with speculation that this number could reach 20 million by the end of the year. Despite market fluctuations, there is a notable optimism surrounding Ethereum’s long-term potential.
One of the key factors driving this increase in confidence is the approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). This regulatory approval has opened the doors for new players, both institutional and individual investors, to enter the market.
The approval of spot ETFs has sparked increased interest from mainstream investors, signaling a readiness to invest in Ethereum for the long term. Some cryptocurrency researchers even predict that by the end of 2024, the value of ETH held in accumulating addresses could rival that of the largest companies globally.
Additionally, the rise in Ethereum staking has contributed to a decrease in available tokens for trading. According to Dune Analytics, over 34.6 million ETH has been locked up in staking contracts, representing nearly 30% of the total Ethereum supply. This shortage of tokens for sale has played a role in stabilizing prices.
The continued increase in staked ETH could lead to further price growth for Ethereum, potentially reducing volatility and increasing long-term growth potential in the market. Currently trading at $2,737, ETH has seen a 3% increase in value over the last 24 hours and a 10% increase over the last week.
Looking ahead, Ethereum’s price outlook appears positive, with the cryptocurrency trading above $2,700, supported by its 50-day moving average. However, the 200-day moving average at $3,022 remains a significant barrier that Ethereum must overcome for sustained price growth.
Overall, the accumulating trend, along with staking and the approval of spot ETFs, suggests a promising future for Ethereum. While significant pricing obstacles remain, the long-term outlook for Ethereum looks bright. As the cryptocurrency continues to evolve and adapt to market trends, investors remain optimistic about its potential for growth and success.