Despite the carnage in the broader altcoin market, the Ethereum HODLers are holding out the price drop. In fact, at the time of writing, the concentration of major HODLers was 41%, suggesting that there is a likelihood that the price will climb to previous ATH levels soon.
During a very volatile session on Thursday, ETH hit a new ATH before a sell-off in the broader market ensued. The altcoin was making a comeback at press time after falling to the $ 2,191 level.
However, the fall in prices did not correspond to a decline in trading volume. Trading volume rose nearly 30%, suggesting that price could soon make a comeback. As already mentioned, despite the drop in prices, the concentration of large HODLers has not decreased either. Besides, the whales hadn’t quite given in to selling pressure. Therefore, the price avoided further corrections in the charts.
Based on data from Skew, ETH’s daily volume has grown exponentially recently, which has also increased to $ 2,500 on the back of the altcoin. This means that traders are optimistic about the price of ETH in the short term. In addition, according to Glassnode, the net outflows from Ethereum have also hit an ATH.
In addition to the above metrics, total deposits in the ETH deposit agreement exceeded $ 9 billion. The social sentiment is optimistic in the case of Ethereum and is waiting in the long term for the EIP-1559 upgrade planned for July 14th.
Multi-chain DeFi insurance aggregators in the ETH network and several DeFi projects rely on the network’s growth at ETH. The HODLers, who have held ETH for over a year, are decisive for the growth of the network. At the time of going to press, there were 57% of these HODLers, and after posting double-digit returns at ETH, the HODLers are waiting for a comeback to the $ 2,600 level to continue selling.
By the time the price reaches its previous ATH, there may be a further accumulation of institutional investors, HODLers, and whales. On the 24th, the number of ETH transactions hit an ATH despite the network fees. This is important for an altcoin in the top 10.
The increasing congestion can lead merchants to turn to the Layer 2 solutions of the DeFi ecosystem. Despite the options available, the increasing demand on the stock exchanges and the key figures signal that ETH could recover to the level of USD 2,600.
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