According to a recent post from IntoTheBlock, ETH has reached a new milestone — ETH has a balance of over 100 million addresses. While this is certainly positive for alts with whale accumulation, demand from the retail space remains bleak.
ETH retail demand surged to new all-time levels as non-zero balance addresses surged.
ETH whales are accumulating funds, but demand remains weak.
Despite the long crypto winter, the Ethereum network continues to grow, especially with the help of layer 2 networks. So much so that it has now achieved a new milestone in address growth.
Recent IntoTheBlock analysis shows that Ethereum has a balance of over 100 million addresses at press time. This means that Ethereum has more addresses than at the peak of the last bull run.
This highlights the fact that more and more people have begun to embrace ETH. But does this mean that ETH can get enough demand to increase its floor price? (Official account: Pepe Soha)
The increase in the number of addresses could indicate an increase in demand for paper ETH. However, the reality is much more complicated. Let's look at demand indicators that may help understand what is happening.
For context, IntoTheBlock highlighted the same situation observed in addresses holding non-zero balances, which stood at over 107 million at press time.
The increasing number of addresses holding non-zero balances is consistent with the latest drop in exchange balances. The amount of ETH on exchanges has been falling since the second week of October and is almost at its lowest level in the past four weeks. This is interesting because it initially spiked between the last week of September and the end of the first week of October.
ETH short-term selling pressure is fading, but can demand take over?
The decline in ETH trading balances confirms healthy demand for ETH. However, whales have the greatest impact on the market and have the power to decide whether the cryptocurrency will enjoy more upside or face more short-term selling pressure.
The supply of ETH held by top addresses has been rising over the past four weeks and is at monthly highs at the time of writing. This suggests that whales have been accumulating at recent lows. Likewise, the average coin age of ETH is also at monthly highs, thus suggesting that current demand levels may have a long-term focus.
Despite the above findings, ETH bulls are still struggling to secure dominance over bears. Granted, there was an attempt to push higher following the support retest we observed last week. As of the time of writing, ETH is trading at $1,563, still close to current short-term support.
The above findings suggest that ETH is still affected by short-term market conditions. However, current market conditions do look favorable for bulls.