Ethereum: Why HODLing May Be Your Best Bet in April

• Ethereum saw a healthy increase in on-chain activity.
• Ethereum Shrimp and Plankton refused to sell their stake.

Ethereum (ETH) surged 82% between February 1 and March 12. It has since retraced to a low of $3,056 before bouncing higher, and is trading at $3,533 at the time of publishing. This looks like a consolidation phase in the second half of January.

AMBCrypto looked at some relevant metrics and found some similarities. These signals highlighted a bullish bias and an overall healthy network.

Volume spikes and active addresses

From October 12, 2023 to January 12, Ethereum rose by 78% from $1,521 to $2,717. It retreated for nearly three weeks before breaking the lower timeframe resistance at $2,380.

Just before the ETH price crash, trading volume reached levels not seen in more than six months. Daily active addresses also skyrocketed, almost reaching the highest level since September 2023.

The increase in activity was understandable as bullish sentiment was strong. This increased demand for ETH and attracted more participation. During the pullback, daily active addresses remained high.

On the other hand, trading volumes declined sharply. It was exactly what had happened in the last three weeks. In March, daily active addresses reached new highs even after the price dropped to the $3,100 level.

Meanwhile, on-chain transaction volumes reached local peaks during January and March. The pullback period saw a slight decline in trading volumes, which was followed by a rapid recovery.

Last week’s trading volume was lower, but otherwise the metrics closely reflected what happened in the second half of January.

This comes on top of ETH bulls forcing a sharp recovery after falling to $3,056. Like February, we can see a bullish trend in April also.

Supply distribution showed that whales were buying.

When small holders sell their assets to whales, it is usually a bullish sign. The Ethereum supply distribution chart showed this but with a caveat. After March 12, the trend for wallets between 1,000 to 10,000 ETH and 100,000 to 10,000 ETH gradually increased.

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Shrimp holders also increased, as did holders of less than 0.1 or 1 Ethereum. The group of 1 to 1 thousand was continuously shrinking. This showed that medium holders were selling their stakes while both whales and shrimp continued to accumulate wealth.

The ETH range of 10k-100k was also trending lower, countering the bullish sentiment. This showed that accumulation and distribution were not black and white, but small ETH holders were increasingly HODLing.

This is an automatic translation of our English version.