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Ethereum: Major Change Coming? Why Strategic Buyers are Scooping Up ETH
In recent weeks, the cryptocurrency market has witnessed a stark contrast in the supply dynamics of two of its most prominent assets, Bitcoin and Ethereum. While Bitcoin’s on-chain data indicates a decline in buying interest and an increase in selling pressure, Ethereum is seeing a surge in strategic accumulation from conviction buyers.
As per recent reports, Ethereum’s supply has shown a significant shift, with long-term holders absorbing ETH at unprecedented levels. This development has led many to speculate that there may be a major change coming for the asset. But what could be driving this increased buying interest?
One factor contributing to the growing confidence among investors is the emergence of conviction buyers as key players in the Ethereum market. According to recent data, these buyers have been consistently accumulating ETH despite the market’s muted sentiment and the ongoing DeFi slowdown.
This development suggests that Ethereum may be witnessing a shift away from fear-based selling, often seen during periods of market uncertainty. Instead, investors appear to be adopting a more strategic approach, with conviction buyers taking center stage.
A closer examination of the on-chain data reveals that the number of loss sellers has significantly declined since April 16th. This is an alarming signal for many analysts as this type of behavior typically precedes a significant downturn in prices.
The lack of fear-based selling combined with the increase in long-term wallet inflows raises questions about potential fundamental shifts in the Ethereum market. These factors, in our opinion, point to a major change coming for ETH.
In the near term, the price action has been characterized by a weak recovery attempt from $1,720-$1,750, which has been met with resistance around $1,800. The MACD has crossed over into bullish territory, indicating a potential trend reversal, but we must emphasize that volume remains modest and any upward movement should be viewed with caution.
While some may view the current buying activity as a sign of FOMO-driven momentum, it’s essential to recognize that the data suggests otherwise. This change in sentiment among investors could have far-reaching implications for Ethereum’s future price action, but the jury is still out on this development.
Ultimately, these changes in supply dynamics have left many wondering what lies ahead for Ethereum. Whether or not this increased buying interest represents a turning point remains to be seen, but one thing is certain: the market will continue to monitor this situation closely as it unfolds.
Disclaimer: The content provided by AMBCrypto.com is meant to be informational in nature and should not be interpreted as investment advice.
Source: https://ambcrypto.com/ethereum-major-change-coming-why-strategic-buyers-are-scooping-up-eth/
