- Ethereum’s price has experienced a strong uptrend, bringing profits to various holder categories, but there’s a noticeable drop in new daily addresses.
- The Market Value to Realized Value (MVRV) indicates a profitable stance for holders, suggesting a potential continuation of the bullish trend.
Ethereum has been exhibiting a robust price trend recently, indicating a potential new uptrend on the horizon. A detailed analysis of holder profitability and new user engagement reveals a complex picture of the current market dynamics.
Ethereum’s Bullish Trend: A Closer Look
At present, Ethereum trades above the $1,780 mark, demonstrating a 13% gain since the initiation of its recent uptrend. Despite a slight dip recently, the cryptocurrency’s gains remain substantial. This minor decline has impacted the Relative Strength Index (RSI), bringing it just below the 70 mark. However, this has not deterred the prevailing bullish sentiment.
The positive market movements have resulted in a significant portion of Ethereum holders seeing profits. According to the 180-day MVRV data from Santiment, these holders are now in a 1.7% profit, marking a shift from their previous loss position held for over three months. The 90-day MVRV data further accentuates this profitability, showing holders in this category reaping over 7% profit.
While the existing holders revel in their gains, the network is facing challenges in attracting new users. The daily new Ethereum addresses have seen a decline, falling below the 70,000 mark. This indicates that the recent bullish trends are primarily driven by existing holders rather than an influx of new users. The on-chain activities, thus, do not correlate with an expansion of the user base.
The Ethereum network finds itself at a critical juncture. On one hand, the existing holders are experiencing profitability, which could potentially fuel a sustained bullish trend. On the other hand, the stagnancy in new user engagement poses a challenge for the network, potentially impeding long-term growth. Addressing this imbalance will be crucial for Ethereum’s trajectory in the competitive crypto landscape.