[Analysis] "Ethereum Likely to Rise Despite Negative Factors Such as Increased Total Supply and Decreased Staking Ratio"

Leading altcoin Ethereum (ETH) is considered likely to rise despite negative factors such as increased total supply and decreased staking ratio.

On the 12th, MacD, a contributor to CryptoQuant, stated in a report, "The recent narrative of Ethereum as 'ultrasound money' is weakening. The total supply has reached an all-time high, and the staking ratio has decreased by about 1% compared to last November," but added, "Despite the negative factors on the supply side, the potential for Ethereum to rise remains high."

MacD's positive stance on Ethereum is based on four factors: ▲ Ethereum's realized price, ▲ the increasing number of perpetual holders, ▲ the futures market, and ▲ institutional investors.

First, regarding Ethereum's realized price, MacD explained, "The current realized price of Ethereum is around $2,200, and considering the current Ethereum price is $2,600, it is significantly undervalued," adding, "$2,200 can be a strong support level."

Regarding Ethereum's perpetual holders, he analyzed, "The number of perpetual holders, who have never sold their accumulated Ethereum, is rapidly increasing," adding, "This is similar to the trend of Bitcoin (BTC) perpetual holders. Some whale investors showed a tendency to leave, but perpetual holders absorbed those volumes."

MacD also viewed the decrease in selling pressure in the futures market positively. He said, "Looking at the futures net market volume chart, the selling position volume reached an all-time high last November when Ethereum rose to $4,000, but it is currently at a lower level. Relatively, buying pressure is entering."

Finally, MacD advised that the trends of institutional investors should also be noted. He said, "Companies like BlackRock, Cumberland, World Liberty Financial, and CoinShares have aggressively accumulated Ethereum," adding, "This is a factor that can significantly reduce downward pressure."