Here’s Why Ethereum Is Getting $ 3,000 In Support – Bitcoin Magazine
Ethereum’s rebound above $ 3,000 is a sign of relief for much of the market, as China’s stepped-up crackdown on crypto trading has traced the entire market back by about 20%. There are many reasons for Ethereum’s price action, and the main one, according to IntoTheBlock, is the interest of short-term traders.
The number of traders who owned ETH in less than a month is now holding 43% more than in July and could even hit ATH levels in May.
The number of young wallets has reached 3.8 million addresses with almost 20 million ETH. The average holding time for coins in these wallets is 10 days, which means that the majority bought Ethereum during the fall on September 20, when the ETH price fell 12% and fell below $ 3,000. The buy correlates with a strong area of support.
In addition to the data provided, Ethereum’s offering is deflationary. As more ETHs come out of circulation, traders and long-term investors look to buy an asset with limited supply that could go up in price in the future.
While there is more purchasing power for Ethereum in the market, balances on the exchanges are on a downward trend, suggesting that traders or investors are unwilling to hold digital currencies on exchanges. ETH has recovered from the flash crash in which there was no constant selling pressure in the market.
Previously, the lead developer of Ethereum, Vitalik Buterin, had published a report on the upcoming network update EIP-4337, which will bring new transaction logic into the network and create additional functions and capabilities for developers.
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According to U.today