Ethereum: Why an ETH explosion is just a matter of time

• The falling exchange reserve came alongside rising active addresses.
• The metrics pointed toward confidence in Ethereum in the long run.

Ethereum [ETH] noted a significant uptrend in the total value staked in the past nine months. AMBCrypto found that despite fluctuations in prices or the higher timeframe trends in the price action, this metric has climbed from 19 million ETH to 29.3 million ETH at press time.

This was a significant, yet steady uptick.

The circulating supply of Ethereum stood at 120.18 million ETH at press time, based on data from CoinMarketCap. This was a sign that investors trusted ETH and the network enormously, even though it is not evident on the price chart just yet.

Ethereum is still underperforming Bitcoin

While the total staked ETH measured 24% of the circulating supply, its uptrend has slowed since December. It rose by only 600k ETH in the past two months, compared to the 1.6 million ETH it gained in the two months before then.

Source: CryptoQuant

At the same time, the Ethereum on exchanges has declined. This downtrend has been in play since 2020. Combined with the increase in staked ETH, the inference was a strong confidence in ETH 2.0 in the market.

Source: CryptoQuant

Ethereum also has a deflationary nature. The past year saw a -0.28% change in the Ethereum supply, according to data from YCharts. A recent report from AMBCrypto noted that the Bitcoin spot ETF approval news dented the active validators count.

Source: Glassnode

Glassnode data showed that the metric trended downward since the 3rd of January. However, it initiated a recovery on 16th of January. Before this dip, the metric had been in an uptrend since 2021 when Glassnode began gathering data for this metric.

The active addresses count appeared to plateau

The combination of falling exchange reserves, rising validators, and rising ETH staked pointed toward robust network security. The active addresses metric has also been in an uptrend since November 2023.

Source: CryptoQuant

However, the 7-day SMA saw a significant dip in the second half of January. This followed the sharp drop in prices ETH suffered, falling from $2.7k to $2.2k. The past five days saw the active addresses count rise once again.

Read Ethereum’s [ETH] Price Prediction 2024-25

Overall, the metrics discussed here all point toward a large portion of users having a long-term bullish outlook on Ethereum, given their willingness to stake ETH.

Validators are also incentivized to act positively. The network usage was growing and could drive further demand.