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The latest Santiment results, published in Cointelegraph Consulting’s biweekly newsletter, indicate that discussions on Ethereum have moved from from highly bearish to predominantly bullish. Historically, this hasn’t meant good news for the token’s price.
Ethereum’s on-chain activity, as measured by unique daily addresses, has rebounded since its nose drop in late summer. The latest wave took Ethereum to a 3-week high of 420,610 addresses per day, marking a 25.2% growth from the previous day.
Another obvious trend is Ethereum’s 365-day dormant circulation, which tracks the renewed movement of all tokens that haven’t previously changed addresses for more than a year. This number has remained relatively low since the low of 7 October, with a recorded daily average of only 13,438 ETH, which suggests that long-term holders are still sitting on their exchanges despite the recent price rebound.
Ethereum’s Network Profit / Loss, which calculates the average profit or loss of all coins that change addresses every day, is a good way to see which holders are selling at a loss. Amid a market crash on March 13, 2020, the Ethereum network realized a cumulative loss of – $ 2,932,200 based on NPLs: a 3-month low. Similarly, the Ethereum network realized a cumulative loss of $ -998,998 on October 7, just before the coin returned above $ 350.
A number of Ethereum funds over the past 2 months featured the same behavioral pattern, suggesting a wave of short-term Ethereum panic selling and redistribution with strong hands, allowing for a more sustained rebound. This metric remains important as statisticians can calculate “blood in the streets”.
Ethereum’s 30-day MVRV report, which tracks the average profit (or loss) of all addresses that have acquired ETH over the past 30 days, indicates short-term ETH holders are, on average, currently on the rise + 8% on their initial investment.
At present, Ethereum’s 30-day MVRV report is still somewhat far from what has historically been considered a “ danger zone ”, marking the levels at which short-term holders have tried to dump their purses. in the past.
Read the full edition of the newsletter here to get the full scoop, complete with detailed graphics and images.
Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals driving the digital asset market. With market insights from one of the industry’s leading analytics providers, Feeling, the newsletter delves into the latest data on social media sentiment, on-chain metrics and derivatives.
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