- Deployed ETH is growing to a new all-time high, but market excitement is still a long way off.
- ETH may lend itself to the bulls if this price action finding proves correct.
While ETH has been in limbo for the past two weeks, it has continued to show healthy growth in other areas. Notably, the amount of ETH staked has maintained an upward trajectory, recently hitting new highs.
Read Ethereum’s [ETH] price forecast 2023-24
The latest Ethereum data showed that the amount of the cryptocurrency currently wagered hit a new high at 22.8 million ETH. This was an important observation for the Ethereum network as it underlined a long-term focus. ETH holders who stake their coins are more focused on a longer time frame and passive profits.
Source: Glassnode
Staked ETH means that those coins are inactive and thus not actively moving in the market. This fits in with the story of a low active supply. One of the latest Glassnode alerts revealed that the last active ETH supply has just hit a new four-week low. This was also reflected in the latest slowdown in trading activity in the crypto market.
#Ethereum $ETH Stock Amount Last Active 1d-1w (1d MA) Just Hit a 1-Month Low of 1,445,821,097 ETH
The previous 1-month low of 1,449,734,130 ETH was observed on May 13, 2023
View statistics:https://t.co/u02oWdxYh5 pic.twitter.com/lgtBWSaf1T
— glassnode alerts (@glassnodealerts) May 24, 2023
Assessing the near-term fate of ETH
ETH’s price action has been relatively dormant despite the rising amount wagered. But can the latest features reveal where it was heading in the near term? Perhaps the bearish performance over the past 24 hours can provide some useful insights. A 2.8% pullback occurred at the time of writing after a brief push above the 50% RSI level.
Source: TradingView
A bearish pullback followed the last time the price broke above the center of the RSI. The current reaction to a re-try has already generated some selling pressure and may signal the start of another wave of selling pressure.
If the above observations lead to price weakness, then ETH could lose its current support near the USD 1,780 price level. The price could drop below $1,700 and if it does, traders should look for support near the $1,641 and $1,510 price levels.
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In terms of on-chain observations, the network’s growth has fallen significantly over the past five days, almost to its lowest level in four weeks. This despite an increase in on-chain volumes in the same period.
Source: Sentiment
Any short-term selling pressure may be short-lived because whales have accumulated. The supply of top addresses is now at its highest level in the past four weeks. This was despite the decline in the number of transactions, which reflected the latest market conditions, underlining low network activity and demand.
Source: Sentiment
Thus, ETH was at the mercy of whales that could grow tired of accumulating and instead contribute to selling pressure at any time. An unexpected parabolic movement in the rate of accumulation would turn the lot into a potentially bullish one.
