Ethereum (ETH) is once again capturing the attention of crypto market participants. Recent data shows that Ethereum's Total Value Locked (TVL) dominance has successfully breached the 53% mark, the highest level since March. Is this an early sign of a big ETH rally?
TVL is an important indicator in the DeFi (Decentralized Finance) world as it reflects how much assets are 'locked' in blockchain-based protocols. The higher the TVL figure for Ethereum, the greater the users' trust in its ecosystem.
Decreasing Selling Pressure, Increasing Accumulation?
Despite the rise in TVL dominance, on-chain data shows something interesting: ETH reserves on crypto exchanges have decreased by 1.1% in the last 24 hours, down to around 19.25 million ETH. This decline usually indicates that short-term selling pressure is beginning to ease.
Furthermore, the netflow of ETH shows a negative figure. This means that more Ethereum is being withdrawn from exchanges and moved to personal wallets. This is often considered an accumulation signal, as investors moving assets to personal wallets usually intend to hold them long-term rather than sell them in the near future.
Bullish Momentum for Ethereum?
The combination of increased TVL dominance and decreased reserves on exchanges could be a positive catalyst for ETH prices in the coming weeks. Although there are no guarantees, these signals often form part of early patterns before a significant rally occurs in the crypto market.
Nonetheless, it is important to remember that the crypto market remains volatile and full of risks. Always conduct your own analysis before making investment decisions.
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Conclusion:
With the continued strengthening of TVL dominance and accumulation signals from long-term investors, Ethereum seems to be setting the stage for the next big move. Is this the right time to pay closer attention to ETH?
Not Financial Advice (NFA). Do Your Own Research (DYOR).