Ethereum’s price action was incredibly week in time after the parabolic move to a record high of $ 290 in February.
It seems that there has been a divergence between the cryptocurrency’s technical outlook and fundamental strength, as a key metric suggests that ETH has built a massive underlying force in recent years.
This data statistic shows that the number of Ethereum wallet addresses with an ETH balance has risen 350% in the past two years – a sign that retail investors have been building the crypto heavily despite the lackluster price action.
Analysts are now noting that the crypto’s continued sideways trading may not take too long, as a few factors suggest it is about to make a huge move.
Ethereum is still stuck in the consolidation phase over several years
Ethereum has been caught in a great period of consolidation in recent years and struggled to build remarkable momentum as it is largely between $ 100 and $ 300.
The cryptocurrency’s trading range has narrowed in recent times as it is now mostly stuck in the lower $ 200 region, causing buyers and sellers to deadlock.
It’s important to note that the crypto mid-term price action has been largely favored by the cryptocurrency lately as it peaked at $ 290 in mid-year since February.
The subsequent drop has meant that the cryptocurrency has fared significantly worse than Bitcoin, and has suffered massive losses against its BTC trading pair in recent weeks.
However, analysts don’t believe this trend will continue for too long as some factors indicate that the cryptocurrency is about to make a huge move.
As NewsBTC reported yesterday, these three factors include the crypto’s long-to-short ratio, the sheer number of long positions and historically low prices.
“ETH Long to short ratio with an ATH. ETH longs for an ATH. ETH Nearly historic all-time lows, with a two-year consolidation. Something will pop soon. “I’m with the herd this time,” a trader noted.
This data measurement shows that ETH has tremendous fundamental power
A data point that shows Ethereum is seeing a growing fundamental strength is the number of active addresses.
According to data From Glassnode, there are now 40 million Ethereum addresses with ETH, and this number is growing by 350% since the price hit a record in the early weeks of 2018.
“There are now 40 million Ethereum addresses with ETH. That’s an increase of more than 350% since ETH saw its ATH price in early 2018. “
This indicates that crypto has been taken over en masse by private investors, despite moderate price action, and this growing investor base could potentially contribute to higher momentum in the coming months.
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