The Ethereum RHODL ratio is a technical indicator used by ethereum traders and investors to measure the current demand for the cryptocurrency. The indicator is calculated by dividing the number of daily new Ethereum addresses that hold a positive balance by the number of daily addresses that have gone to zero.
The Ethereum RHODL ratio provides valuable information about the trend in ethereum adoption and can be used as a gauge of market sentiment. If the RHODL ratio is increasing, it suggests that more people are buying and holding Ethereum, which is a bullish signal for the cryptocurrency. Conversely, if the RHODL ratio is decreasing, it suggests that people are selling theire ethereum, which is a bearish signal.
However, it’s important to note that the Ethereum RHODL ratio is just one of many indicators used by traders and investors to make informed decisions about their investments.
Ethereum Indicator Overview
This indicator uses a ratio of ethereum Realized Value HODL Waves.
In summary, Ethereum Realized Value HODL waves are different age bands of UTXO’s (coins) weighted by the Realized Value of coins within each band.
The Realized Value is the price of UTXO’s (coins) when they were last moved from one wallet to another.
Ethereum RHODL Ratio looks at the ratio between RHODL band of 1 week versus the RHODL band of 1-2yrs.
It also calibrates for increased hodl’ing over time and for lost coins by multiplying the ratio by the age of the market in number of days.
When the 1-week value is significantly higher than the 1-2yr it is a signal that the market is becoming overheated.
How to Use this Indicator for Ethereum crypto?
When ethereum RHODL ratio starts to approach the red band it can signal that the market is overheating. This has historically been a good time for investors to take profits in each cycle.
Ethereum as a cryptocurrency has started 2023 very strong and crypto spring seems to be arriving at its doorstep. This onchain indicator also helps us to identify your situation in a context of peripheral vision to place the desired risk of our portfolio, for long-term investments.
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