- While the price remained low, investors accumulated their holdings of ETH.
- Although confidence was high, market indicators remained bearish for ETH.
As we say goodbye to 2023, ether [ETH]the king of altcoins, took remarkable steps to eclipse the king of cryptos, Bitcoin [BTC].
A recent development suggests that investor confidence in ETH has increased at a time when Bitcoin is awaiting a major event. Does this mean Ethereum will bring profits to investors in 2024?
Long-term holders trust Ethereum
According to IntoTheBlock's latest tweet, Ethereum recently flipped Bitcoin into a key metric. More specifically, the total number of long-term holders of Ethereum [LTHs] outperformed Bitcoin for the second time ever.
This reflected investors' confidence in ETH and showed that they expected the altcoin to rise sharply in the coming year.
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Review 2023! This year, the percentage of long-term $ETH holders surpassed that of Bitcoin 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, the average holding period for Bitcoin was around four years Cardanos [ADA] was less than a year, how reported formerly from AMBCrypto.
To find out whether the attitude of long-term holders influences the behavior of retail investors, AMBCrypto reviewed data from Santiment.
Our analysis found that the market overall showed confidence in ETH as it continued to accumulate supplies. ETHThe supply on exchanges has seen a decline in the recent past, while the supply outside of exchanges has steadily increased.
The fact that investors were buying ETH was further proven by AMBCrypto's analysis of CryptoQuant Data, as ETH's foreign exchange reserves were decreasing at press time.
Source: Santiment
Whale activity around Ethereum also remained high over the past month, as evidenced by the increase in the number of whale transactions. In fact, it was shown that whales were buying Ethereum as the supply of the altcoin held by top addresses skyrocketed.
Things also looked optimistic on the derivatives side as the taker-buy-sell ratio was green. This meant that buying sentiment prevailed in the futures market.
The coin’s funding rate also remained high, meaning derivatives investors were actively buying ETH at press time.
Source: CryptoQuant
Is 2024 bullish for Ethereum?
However, despite investors' attempts to hoard ETH, the token's price action turned bearish in the final days of 2023 CoinMarketCapETH is down almost 1% in the last 24 hours.
At the time of writing, ETH was trading at $2,283.21, with a market cap of over $274 billion.
To read Ethereum [ETH] Price prediction 2023-24
To see if Ethereum would start 2024 with a bull rally, AMBCrypto took a look at its daily chart. Our analysis found that investor confidence in ETH It might take some time to think about the price as the MACD showed a bearish crossover at press time.
Its Relative Strength Index (RSI) also moved lower, indicating a slight decline in price in the near future.
Source: TradingView
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