Ethereum Surpasses Bitcoin as Long Holders Rise to 74.7%

The long-term holder ratios of Ethereum (ETH) and Bitcoin (BTC) over time show a clear trend in favor of the former.

As of now, 74.7% of Ethereum addresses belong to long-term holders, a figure that exceeds the proportion of long-term holders in Bitcoin, which stands at just over 60%

Ethereum leads the holder ratios

According to the latest data compiled by IntoTheBlock, the latest trend suggests that Ethereum holders are showing an increasing tendency to hold onto their assets for extended periods, likely reflecting confidence in ETH’s trajectory. The chain analytics platform stated that this trend is likely to continue until the leading altcoin approaches its previous all-time high, at which point profit-taking behavior among holders could cause these ratios to decline.

It is important to note that this trend of long-term ETH holders also steadily increased throughout 2024. During this period, the number of Bitcoin holders, on the other hand, decreased.

In fact, previous data from IntoTheBlock revealed that the percentage of long-term holders of Ethereum rose from 59% at the beginning of the year to 75% by the end of 2024. At the same time, Bitcoin saw its proportion of long-term holders decreased steadily from around 70% to 62%.

Additionally, choppy price action briefly caused Bitcoin to fall below $92,000 this week. Since then, the price has recovered modestly, with Bitcoin trading just above $94,000. However, the funding rate of Bitcoin, which illuminates the demand of the derivatives market, is still low.

Bitcoin funding rates fall as Ethereum eyes a rally

As CryptoQuant explains, for any price increase to be sustainable, funding rates must reflect strong demand. While a delayed rise in these rates during a rally is not uncommon, their absence raises questions about the underlying strength of the market. During the recent rally in Bitcoin, funding rates rose midway, indicating a delayed influx of demand.

However, these rates fell sharply after Bitcoin was rejected at the $108,000 resistance level last week. This trend indicated weakening market sentiment and waning bullish momentum. If Bitcoin fails to hold above the critical $90,000 support, it risks increased selling pressure and possibly deeper corrections.

Meanwhile, crypto analyst Ali Martinez revealed that Ethereum appears to be following an ascending parallel channel. Within this pattern, a possible drop to the lower limit below $2,800 could serve as a key support level and a launch pad for a significant rally, possibly propelling the altcoin towards the $6,000 mark.

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