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- Investors in general accumulated ETH while the price remained low.
- Although confidence was high, market indicators remained bearish on ETH.
As we say goodbye to 2023, Ethereum [ETH]the king of the altcoins, made remarkable strides in an attempt to surpass the king of the cryptos, Bitcoin [BTC].
A recent development marked greater investor confidence in ETH, at a time when Bitcoin is awaiting a major event. Does this mean Ethereum will deliver profits for investors in 2024?
Long-term holders have confidence in Ethereum
According to IntoTheBlock’s latest tweet, Ethereum recently overturned Bitcoin in a key metric. To be precise, the total number of long-term holders of Ethereum [LTHs] surpassed Bitcoin’s for the second time ever.
This reflected investors’ confidence in ETH, showing that they expected the altco to boom in the coming year.
2023 review! This year, the percentage of the long term $ETH holders surpassed Bitcoin’s for the second time ever! pic.twitter.com/i6kDzAjzgM
— IntoTheBlock (@intotheblock) December 30, 2023
It was interesting to note that while ETH overtook Bitcoin in terms of LTHs, Bitcoin’s average holding time was around four years, while Cardanos [ADA] was less than a year, like reported previously by AMBCrypto.
To see if the mindset of long-term investors influenced the behavior of retail investors, AMBCrypto checked Santiment’s data.
Our analysis showed that the market as a whole showed confidence in ETH as it continued to build. ETHThe supply on the exchanges has witnessed a decline in the recent past, while the supply outside the exchanges has consistently increased.
The fact that investors bought ETH was further proven by AMBCrypto’s analysis of CryptoQuant facts, as ETH’s foreign exchange reserves were declining at the time of writing.
Source: Santiment
Whale activity around Ethereum also remained high over the past month, as evidenced by the increase in whale transactions. Whales were even shown to be buying Ethereum as the supply of the altcoin in the hands of top addresses skyrocketed.
Things also looked optimistic on the derivatives side as the Taker Buy Sell Ratio was green. This meant that buying sentiment was dominant in the futures market.
The coin’s Funding Rate also remained high, meaning derivatives investors were actively buying ETH at the time of writing.
Source: CryptoQuant
Will 2024 be bullish for Ethereum?
However, despite investors’ efforts to stockpile ETH, the token’s price action turned bearish during the final days of 2023. According to CoinMarketCapETH has fallen by almost 1% in the past 24 hours.
At the time of writing, ETH was trading at $2,283.21 with a market cap of over $274 billion.
Read Ethereums [ETH] Price prediction 2023-24
To see if Ethereum would start 2024 with a bull rally, AMBCrypto looked at the daily chart. Our analysis showed that investor confidence in ETH It might take some time to think about the price as the MACD was showing a bearish crossover at the time of writing.
The Relative Strength Index (RSI) also moved lower, indicating a slight decline in prices in the short term.
Source: TradingView
