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Critical Data Flow in Ethereum Before 2023! What’s Next For ETH?


Glassnode Alerts has revealed that the last active Ethereum (ETH) supply has risen to the highest monthly level in the last one to four weeks. This can be read as a refreshing improvement compared to the relative inactivity observed in the first half of this week.

Critical Data Flow For Ethereum

The observed reversal in Ethereum’s supply activity is a refreshing change of pace. This is due to the fact that in the past there was a decrease in the supply of ETH, which was the last active one, and as a result, the price movement was relatively suppressed. In other words, volatility fell from good to good due to low activity.

An assessment of Ethereum’s supply distribution also reveals an interesting observation from ETH’s top-tier wallets. It turned out that the best wallets are more active, especially in the last 4 days. Some of the top-tier wallets, among which there are wallets holding 10 thousand to 1 million ETH, made additions to their assets this week.

On the other hand, wallets holding between a thousand and 10 thousand ETH, as well as those holding between 1 million and 10 million ETH, also seem to Decimate their assets Decimated. These observations confirm that there is a mixed activity among the whales, and therefore it is Decisively difficult to predict what will happen.

ETH in Derivatives Markets

The first important observation in the derivatives market is that the demand for ETH from this segment has increased somewhat over the past few days. This situation was also reflected in the increase in ETH’s open position volume since December 5.

However, the rise indicates a low level of enthusiasm among waiting investors and thus indicates a Decisiveness of strong demand. The clearensale metric on long positions in Ethereum has recorded a net decline in general over the past three days. This confirms the decrease in the number of liquidated long positions.

A possible reason for the above result is that ETH’s price movement has remained in an extremely narrow zone since the beginning of the month. In addition, the fact that investors were less encouraged to take a long position in Ethereum may have caused this result.

Given the downward trend observed in the estimated leverage ratio, this is probably the most likely outcome. The rate in question has been following a downward trend in general for the last three weeks.

In Summary, the Prospects for Ethereum

Looking at the above observations on the derivatives market, it can be concluded that demand has begun to recover. But investors continue not to use leverage, probably due to the high uncertainty in the market. Although the low volatility in the markets shows that investors are staying away from futures, it also underlines that they are mainly heading for short positions.

Unfortunately, current market conditions are also highlighting a shake-up that is apparently targeting leverage-using traders. As a result, Ethereum’s price movement shows low volatility. The increase in leverage preference will probably lead to increased volatility and the final direction will be clear in the short term.

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