After hitting highs of $4,350 recently, Ethereum (ETH) has dropped by 9.4% in the last 24 hours to trade at $3,280 at the time of writing, according to CoinMarketCap.
The crypto market has experienced a steep plunge based on Elon Musk’s tweets, which have created a headwind for Bitcoin.
Nevertheless, Ethereum hodlers are showing bullish signs, as acknowledged by Messari Crypto researcher Mira Christianto. She explained:
“ETH down -15% this week without an uptick in exchange inflows. Decentralized exchanges are also not seeing a meaningful volume uptick. Hodlers are stubbornly bullish.”
Whenever cryptocurrencies leave exchanges, this signifies that a hodling culture has begun because coins are typically transferred to cold storages after that.
Christianto’s sentiments are echoed by market analyst Joseph Young who recently noted that ETH supply in crypto exchanges was continuously being depleted.
Hodling Ethereum is a favoured strategy
According to a recent report by on-chain metrics provider Glassnode, Ethereum coins aged between one and six months are progressively increasing in thickness. This suggests that hodling ETH accumulated in the early bull market is still a favoured strategy.
Ethereum hodlers have also been taking profit based on a remarkable bull run, which has prompted new all-time highs (ATHs).
Ethereum google searches are twice that of 2017
According to crypto data provider Documenting Ethereum:
“Ethereum google search volume is now twice that of 2017.”
It, therefore, shows the increasing interest in the ETH network. More investments continue trickling in the Ethereum 2.0 deposit contract because it currently stands at 4% of ETH supply.
ETH 2.0 is seen as a game-changer that seeks to transit the current proof-of-work consensus mechanism to a proof-of-stake framework, which is touted to be more environmentally friendly and cost-effective.
The proof-of-stake algorithm allows for the confirmation of blocks to be more energy-efficient and requires validators to stake Ether instead of solving a cryptographic puzzle.
Additionally, Ethereum’s transition to proof-of-stake will allow the blockchain to see upgrades, including sharding, which would improve scalability.
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