Ether’s market sentiment is spiking as long-term investors are up around 88% — is there a potential sell-off or slump in the short-term?
The latest findings in Cointelegraph Consulting’s biweekly newsletter suggest that Ether won’t sustain its rally.
The 365-day market-value-to-realized-value ratio of Ethereum’s native Ether (ETH) token is currently at a two-year high of 1.88. This indicates that Ether’s long-term holders are presently up 88% on their initial investment, on average. This is the highest average profit for Ether’s long-term holders since February 2018, and there’s a rising incentive to sell and take profits.
Over the past 30 days, the collective balance of Ether mining pools has shrunk by more than 80,000 ETH (around $35,000,000 at current prices), suggesting some level of concern among the ETH mining community about the coin’s short-term price potential.
On-chain data points to a string of recent spikes in the “dormant circulation” of ETH coins that haven’t moved addresses in the past 365 days. Over the last month, the dormant circulation has increased by 58.6% (compared with the month before), pointing to a potential sell-off from ETH holders and long-term investors.
The last 24 hours have recorded one of the largest bearish divergences in the history of the Santiment trading model, showing a negative 106% divergence of daily active addresses, compared with its median expected value, when aligned with the median expected values of daily price closes.
Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers, Santiment, the newsletter dives into the latest data on social media sentiment, on-chain metrics and derivatives.
We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.
