As the market moved into the red zone for the day, Ethereum continued to remain in the green. In fact, Ethereum’s rise has been quite contained as opposed to many other altcoins that did not display a systematic rally. This could be one of the reasons why Ethereum holders are behaving the way they are at the moment.
On-chain data is currently displaying 3 to 6 months old ETH in negative amounts, while the 6 to 12 month old supply is presently sitting at a 5-year high.
Moreover, the 1 to 3 months old, and 1 to 2 years old supply have all increased. This is indicative of the fact that Ethereum investors are continuously HODLing throughout this bull rally.
As a result, some older coins (2-5 years) are maturing and have thus led to an increase in the 5-7 year old cohorts. This section of the supply now holds about 8.92 million ETH which is worth more than $41.8 billion.
This HODLing can primarily be witnessed due to Ethereum’s movement throughout October and November to date. The asset has been one of the only few coins in the market to register a steady rise. Up by 69%, ETH not only created a new all-time high 3 days ago, but it also breached the $4500 level.
However, as investors continue HODLing, the network upgrades are also taking Ethereum to the next level.
The upcoming Arrow Glacier update of Demeber will implement Ethereum Improvement Protocol (EIP) – 4345 which will once again further postpone the difficulty bomb to 10.7 million blocks and will approximately arrive in June 2022
Developers have stated that a huge reason behind this is the Merge upgrade which the developers plan to deploy before summer next year.
The difficulty bomb had been introduced originally, to facilitate the transition to proof of stake (POS). With time, it gained the additional property of forcing Ethereum users to upgrade their nodes. This basically means that staying on the old chain will not be an option.
Finally, if investors continue to HODL through the upgrade, the bullish rally will too.
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