ETH may start the week on a bullish note and these observations are to thank

  • ETH number of addresses with 10+ coins reached an ATH
  • ETH’s average coin age witnessed some upside after a significant drop

If you’ve been paying close attention to Ethereum over the past two weeks, you may have noticed a lot of sideways price movement. While this reflects the current general state of the entire crypto market, ETH may be about to experience some volatility this week.

Read about Ethereum [ETH] price forecast 2023-2024

According to a recent Glassnode notification, the number of addresses with 10 or more ETH coins increased to a new ATH. This means that the number of addresses with an amount of ETH worth over 10,000 was 343,918.

What does it mean for ETH?

An increase in these addresses confirmed several things about ETH. There was decent demand for the cryptocurrency at the press time level and investors were accumulating the token. A notable observation that may support this observation was the increase in active addresses in recent days.

Source: Sentiment

The observation was in line with the increase in the number of addresses with over 10 ETH. An uptick in Ethereum’s network growth was also observed around the same time. Interestingly, ETH’s average coin age regained its upward trajectory after previously gaining some downside.

ETH stands for coin age

Source: Sentiment

Perhaps this was confirmation that ETH investors chose to hold on to ETH instead of taking short-term profits. In addition, the derivatives market can provide an ounce of clarity on the current situation regarding ETH demand.

Ethereum’s open interest in the derivatives market managed to achieve a significant rally in the last five days. This confirmed that demand for derivatives was gradually recovering. Furthermore, this move can be considered a sign of returning price volatility.

ETH estimated loan-to-value ratio and open rate for derivatives

Source: CryptoQuant

It was also worth noting that ETH’s estimated leverage ratio increased during the same time. This was important because leverage is one of the reasons why the crypto market is so volatile. The return on leverage underpins higher investor confidence.

A head full of expectations

ETH’s price action remained relatively unchanged despite the observed changes suggesting that healthy demand was gradually recovering. As of December 11, ETH was trading at $1,265, which was still within the same narrow range it had been trading in since the beginning of the month.

ETH price action

Source: TradingView

Low volatility and lack of strong demand was the prevailing basis for the market state. But this was a temporary stage in the crypto market. However, it was clear that top addresses expected a bullish recovery.

This was a reasonable expectation given that prices were still greatly reduced. But investors should note that the likelihood of a bearish shock was still highly likely.

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