Journalist
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Key Takeaways
Ethereum’s stablecoin supply has hit a record $150 billion, reinforcing confidence in the network. Investors are preparing for a move, with $5K emerging as the next key resistance.
Ethereum’s [ETH] stablecoin market just hit a record $150 billion, marking a new milestone for the network. This comes as Ethereum’s price action still leans bullish.
The structure on the daily chart seemed optimistic, with ETH oscillating above a key demand zone at around $4.3K over the last one week.
However, the price action lacks significant push for another explosive bullish run. Could the positive developments on-chain provide the much-needed spark?
Institutional confidence in the making
With the stablecoin supply hitting its all-time high and a significant number of geographically distributed validators now at approximately 1.1 million, per Token Terminal, a run past $5K could be on the cards.
This could provide the required market confidence to attract more institutional interest.
Source: Token Terminal
At press time, retail traders mostly dominated the price action. With assured security factors and consistent supply, investors and big institutions could chip in and initiate another bullish run.
The institutional flocking is evident from Ethereum’s surging Open Interest.
Source: CryptoQuant
Ethereum: Breaking down supply dynamics
Zooming down to demand and supply on chain metrics, the current exchange to supply ratio was currently surging.
AMBCrypto’s look at CryptoQuant indicated a significant surge in the exchange reserve wallet to supply ratio over the last 24 hours until press time.
The reserves further affirmed the guaranteed supply consistency on ETH, which is also a plus for the altcoin’s price action.
For now, holders seem to be watching and waiting before they accumulate long position orders in the spot and derivative markets.
Source: CryptoQuant
The number of Ethereum unique depositors also turned positive, with the number steadily surging over the last one week. At press time, there were over 2 million unique depositors into the ETH network.
Source: CryptoQuant
With metrics hinting a potential rally and next significant resistance level a $5k, ETH’s all-time high, the altcoin could be on the verge of making another record in the near future.