- The number of Ethereum addresses holding 0.01+ ETH has hit a new all-time high of 15.71 million
- This is indicative of growth in the Ethereum ecosystem through use of ETH or holding as an investment
- Ethereum investors keep locking their funds in the ETH2.0 contract that now has 5.179M ETH
- Ethereum’s $2k is the level to watch during the weekly and monthly closes
The number of Ethereum addresses holding 0.01 ETH or more has hit an all-time high of 15,710,361. This milestone was observed and shared by the team at Glassnode through the tweet below.
— glassnode alerts (@glassnodealerts) May 29, 2021
Such a High Number of Addresses with 0.01+ ETH Points to Use and/or Holding
Such a high number of Ethereum addresses holding 0.01 ETH or more is indicative of two things. Firstly, the Ethereum ecosystem is growing with more users joining the network to utilize the various DeFi platforms or are using ETH to pay for gas in other ERC20 token transactions. Secondly, it could also mean that more retail investors are buying and holding Ethereum for the long term.
5.179M Ethereum Locked in the ETH2.0 Deposit Contract
Ethereum investors playing the long game are best exemplified by those locking their ETH in the Ethereum 2.0 contract. At the time of writing, 5,179,010 ETH worth $12.243 billion is currently locked in the Ethereum 2.0 deposit contract. This amount continues to grow by the day as investors and users of Ethereum continue to show their support for the upgrade.
Ethereum’s $2k Support is the Level to Watch
In terms of price action, Ethereum is currently trading above the 100-day moving average (yellow) as seen in the chart below. This moving average is providing adequate support for Ethereum at current levels of $2,300.
Also from the chart, it can be observed that Ethereum is also trading above the 200-day moving average (green).
Ethereum maintaining a value above this MA will be crucial in determining whether ETH resumes its bullish trajectory into the month of June.
Also worth mentioning is that Ethereum’s weekly close is hours away and its monthly close is on Monday, May 31st. The latter date is also Memorial Day in the United States. As a result, the overall crypto trade volume will likely be low as both retail and institutional investors in the US, take some time off for the three-day weekend.
A drop in trade volume increases the likelihood of Ethereum retesting the psychological support of $2k between now and Monday. If this price level fails, Ethereum will have to depend on last week’s lows of $1,880 and $1,724 as its next line of defense. If these levels fail, Ethereum has the 200-day moving average at the $1,600 price area as its final line of hope before it enters bear territory.