The year 2022 was not kind to the cryptocurrency market. Coins and tokens that were in a bull market in 2021 began to fall as 2022 approached. Since the beginning of the year, the global cryptocurrency market has been prospering in search of a sustainable gain.
Along with Bitcoin, Ethereum has been attempting to break out of the $3,000 range, but each attempt has failed as speculators are busy booking profits. However, an on-chain statistic shows that things are improving for Ethereum, causing the price to rise.
These Ethereum On-Chain Metrics Indicate a Bull Run
The shrinking ETH existing on exchanges is now the most positive on-chain measure favoring Ethereum’s bull run from a long-term perspective. This figure has been falling since it peaked at 29.69 million on July 30, 2021.
After the on-chain metric began to plummet, the Ethereum supply dropped about 50% and is now hanging around 14.91 percent, indicating that investors are not bullish on Ethereum price performance.
They are, however, using other DeFi tools such as lending, staking, and borrowing to increase the value of their ETH holdings.
This is one of the biggest bullish moves a cryptocurrency has ever seen, and it is happening with Ethereum. Furthermore, the planned Ethereum update “The Merge,” which will convert Ethereum from proof-of-work to proof-of-stake, contributes to Ethereum’s decrease on exchanges.
The drop in the quantity of deposits made at centralized institutions is the second factor supporting the bullish outlook. This figure peaked at 455.28k active deposits on June 17 and has been steadily declining since then.
Another aspect supporting Ethereum’s bull run is the supply distribution chart, which shows that institutions and whales have been busy buying drop activity. This demonstrates that investors began accumulating in the hope of a bull trend.
If accumulation falls, it is usually because distributors or investors are booking profits, which happens at the peak or end of a bull run.
Wallets holding 10,000 to 100,000 Ethereum tokens have grown their holdings from 24.85 percent to 25.62 percent since the beginning of March 2022. This higher percentage of holdings indicates that investors, whether institutions or whales, are all optimistic about Ethereum’s price performance in the next days.