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- ETH mining wallets showed declining supply since early 2024.
- Technical indicators and on-chain data signaled cautious optimism around the altcoin.
Ethereum [ETH] has been resilient amid increased volatility within the market.
With a minor bounce, the second-largest cryptocurrency based on market capitalization sparked interest among market participants and analysts alike.
Along with this surge came the gradual decrease in supply held within mining wallets during the first half of 2024.
Ethereum’s mining wallet supply has turned out to be one of the highly leading on-chain metrics when it comes to market sentiment.
According to Santiment’s tweet, Ethereum mining wallets have dipped 4.5% of ETH reserves since their peak on the 10th of June. This may be reversed with the recent price rebound.
Source: X
Ethereum: Cautious optimism
Ethereum’s chart patterns painted a series of lower highs versus lower lows. The price action of late has opened the door for a potential trend reversal.
The stochastic RSI has given a bullish crossover, signaling a rising short-term momentum.
Source: TradingView
Mixed bag of signals
Interestingly, the general supply on exchanges has been quite stable. However, the net flows have shown periodic peaks of both inflows and outflows.
The volatility in exchange activity simply underpins how uncertain the market is at this juncture.
Source: IntoTheBlock
A double-edged sword
Coinglass’ liquidation heatmap data indicated large liquidation levels between $2,300 and $2,450 price levels.
This suggested that the market has a bullish bias, with liquidation pools of over 32 million worth of Ethereum. This could act as magnets to pull the prices upwards.
Source: Coinglass
Read Ethereum’s [ETH] Price Prediction 2024–2025
Ethereum bull run on the horizon?
Fundamentally, Ethereum is still holding strong, despite the crypto market experiencing uncertain times. A recent mild rebound could precede a more significant move.
Investors must be keen on waning supplies of mining wallets because an increase could be a good indication of the arrival of the next bull run.
