Ethereum prices have been trying to get out of the $ 3,000 range for quite some time, but have failed in the face of investors booking profits. ETH has spent a lot of time stuck in this range. And now it may seem unpleasant to traders in the short term. However, on-chain metrics show that things are accumulating for the better, especially in the long run.
Ethereum prices prepare for a large bull run
Perhaps the most bullish chain indicator of Ethereum from a long-term perspective is the decline in ETH present on the exchange. This number has been declining since its peak on July 30th at 29.69 million.
Since then, supply has been hovering at 14.91%, down almost 50%. This significant decline is not only bullish on Ethereum’s price performance, but also the use of other DeFi products such as lending, staking and borrowing to enable investors to acquire ETH holdings. Shows more money.
This development is the most bullish outlook cryptocurrency has ever seen and is happening at ETH. Adding this to the next update, The Merge, which will transform the Ethereum blockchain from proof of work to proof of stake, the drop in ETH on the exchange and the big picture makes sense.
Driving this bullish outlook is the net reduction in the number of deposits made to these centralized entities. This number peaked at 455.28k active deposits on June 17th and has been declining since then.
Even this indicator represents the bullishness of investors, adding credibility to ETH’s long-term bullish performance.
Supporting this insane rise in Ethereum prices is the supply distribution chart. This shows that institutional investors and whales are busy buying dips. This on-chain index keeps track of changes in the wallet holding the ETH token.
The surge in this indicator indicates that investors are accumulating in anticipation of an uptrend. However, a downtrend indicates that the distribution or investor has reserved a profit. This often happens during peak hours or at the end of a bull run.
Since early March, wallets holding 10,000 to 100,000 ETH tokens have increased their holdings from 24.85% to 25.62%. This sudden rise began after the Ethereum price plunged on March 13, with no signs of a serious fall and continues during the press.
This steady surge in holdings shows that investors, whether institutional or whales, are optimistic about ETH’s price performance in the upcoming Brulan.