The number of first-time ETH buyers and trend traders has surged in recent days, indicating new demand flowing into this cryptocurrency market.
Analysis from Glassnode published on August 9 warns that the growth of new buyers and gradually increasing traders reflects both new joining demand and the positivity from current ETH holders wanting to raise their cost basis and reinvest.
MAIN CONTENT
Significant increase in new ETH buyers and trend traders.
The market welcomes new demand, alongside the increase in cost basis from older holders.
Positive signs for a recovery or growth trend in the ETH market.
Why is the growth of new buyers and trend traders important?
The addition of new buyers and momentum traders reflects the growing appeal of ETH in the cryptocurrency market. This is a sign of increased demand that helps reinforce prices and recovery potential.
As more new investors join, liquidity increases, supporting more active trading. At the same time, older holders also tend to buy more, raising their cost basis, which is an indicator of long-term confidence in ETH.
The long-term impacts of the re-engagement of ETH holders
The reinvestment of holders shows their expectations for ETH's continued price increase potential, an important factor driving market activity. This reduces sell pressure, supporting a more sustainable price increase.
Market analysts also believe that the process of increasing the cost basis is a sign of strengthened confidence in the technology foundation and the development of the Ethereum ecosystem. This is a necessary step for ETH to maintain its leading position.
"The increase in new buyers along with current holders raising their cost basis is evidence of the health and stable growth potential of ETH."
Glassnode – Report dated August 9, 2024
Frequently Asked Questions
How does an increase in new buyers affect ETH prices?
An increase in new buyers usually boosts market liquidity and demand, contributing to either an increase or stabilization of ETH prices in the short and long term.
Why do ETH holders raise their cost basis and reinvest?
Holders increase their cost basis because they believe in ETH's price potential in the future; this action helps reduce sell pressure and strengthens the bullish trend.
How reliable is Glassnode's analysis?
Glassnode is a reputable company in the field of on-chain data and analysis, trusted by many investors and cryptocurrency experts.
What should new investors pay attention to when the market has new demand?
New investors should carefully analyze trends and market forecasts, combined with risk management to optimize profits.
How does the change in the number of buyers affect ETH volatility?
An increase in new buyers often leads to stronger volatility due to increased trading volume, but also creates conditions for a bullish trend when demand is high.
Source: https://tintucbitcoin.com/ethereum-but-pha-luong-nguoi-mua-moi/
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