Ethereum keeps soaring and surprising us; several indicators show a very powerful trend for Ethereum and several ways Ethereum performs better than Bitcoin. It is exciting how the big money investors are beginning to see Ethereum’s potential and are rushing into Ethereum.
From the chart, Ethereum is trying to cross the purple line, which is the fifty-day moving average. The fifty-day moving average has acted as a resistance line several times, but Ethereum was always rejected when trying to cross. Ethereum is still above the 200-day moving average on the bright side, and it has not come down to test it as a line of support.
Bitcoin currently has a market dominance of about 42%, and Ethereum has 18%; at this point, Ethereum needs to do a 2.5x to flip Bitcoin. It would be interesting if Ethereum became the number one cryptocurrency by overthrowing Bitcoin.
We cannot see that happening anytime soon because Bitcoin is highly invested in by the big money plays are major retail investors. People play the altcoin game, collect their gains, and store them in Bitcoin to make more money.
Despite the drop in the price of Ethereum because of the crash, the number of Ethereum hodlers continues to grow. There are currently 58.9 million addresses with a non-zero balance; some of those addresses may only have about ten dollars worth of Ethereum on them, and most of them will have more. There was an increase of 8.1 million new addresses on Ethereum this year alone.
There has been an amazing increase in Ethereum adoption; new users have been coming into the ecosystem.
Ethereum has also been performing excellently in terms of on-chain volume; over the past few months, Ethereum has been going crazy. Ethereum did 366 billion dollars worth of on-chain volume in May alone, and that is almost all of what Ethereum did throughout last year. Since the year started, Ethereum has done about two trillion dollars worth of on-chain volume in less than six months.
Accumulation is going on for Ethereum; people buy it, get it out of exchanges, trade it, stake it, and accumulate positions in the network. The majority of Ethereum is in the hands of people who are using it.
During the sell-off situation for Ethereum, it turns out that there were addresses that had about a hundred to ten thousand Ethereum selling off over the last few weeks of May. But whale accounts that have over ten thousand Ethereum were accumulating more Ethereum during the sell-off situation.
What happened during the sell-off is full proof that big money and small money play the cryptocurrency game differently. The big money players buy the dips while the small money players sell the dips.
The sell-off was a good opportunity for big money investors; it seems like they had already seen Ethereum’s potential and have been wanting to get into the market, so retail investors, panicking and selling out their Ethereum made it easy for big-money investors to troop in and get positions in the market.
