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Ethereum Surges 82% in Value, Promising Outlook for April

The Essentials in Brief

Ethereum (ETH) saw an impressive increase of 82% between February 1 and March 12. Despite a drop to 3056 dollars, the price recovered and was last quoted at 3533 dollars. The analysis of various on-chain metrics points to a persistently positive sentiment and a healthy network. In particular, the behaviour of ETH whales and smaller holders shows interesting trends for April.

Growth and Consolidation: A Look at the Numbers

Ethereum experienced a rally from 1521 dollars to 2717 dollars from October 12, 2023 to January 12, which represents an increase of 78%. After a brief consolidation phase, the price broke through the resistance at 2380 dollars. Before the recent price drop, trading volume and daily active addresses reached highs that had not been seen for over six months. Even during the consolidation phase in March, daily active addresses remained high, while trading volume dropped significantly. These patterns resemble those of the second half of January, suggesting a possible continuation of the bull movement in April.

The Role of Whales and Shrimps

The distribution of supply showed that whales actively bought ETH while medium-sized holders sold their holdings. In particular, wallets with 1k to 10k ETH and 100k to 1 million ETH recorded gains after March 12. At the same time, the number of “shrimp” holders, those with less than 0.1 or 1 Ethereum, grew. This suggests that despite a decrease in the 10k-100k ETH category, there is an overall tendency to hold (HODLing) among smaller ETH holders.

Our Assessment

The recent data and trends in Ethereum strongly suggest a positive development in April. The combination of high engagement, healthy network activity and accumulation behaviour of both whales and smaller holders underscores confidence in the strength and potential of Ethereum. For investors, this could mean that holding on to their ETH holdings (HODLing) might be the wisest strategy in the near future.

Sources: Santiment, AMBCrypto