Hold the phone, crypto fam! Things are getting interesting with Ethereum. Renowned analyst Ali Martinez just dropped a bomb: Ethereum’s adjusted Supply Held by Entities (SFE) flow – what some of us affectionately call the ‘sleeping flow’ – has plunged below 1 million. And frankly? That’s HUGE.
Now, what the hell does ‘sleeping flow’ even mean? It basically measures the movement of ETH from long-term holders. When this metric dips, it signals that those diamond-handed HODLers aren’t feeling the urge to sell. They’re staying put.
Historically, seeing this number fall under 1 million has been a pretty damn good indicator that we’re sniffing around the macro bottom. We’re talking a potential bottom, people! Could this be the moment we’ve all been waiting for?
Let’s break down the science a bit. Imagine a bunch of ETH sitting in wallets for ages. Those are the ‘entities’. When they wake up and move those coins, it affects this flow. A lower flow means less selling pressure – clever, right?
This suggests Ethereum might be criminally undervalued right now. Long-term holders, the folks who believe in the tech, are clearly not panicking. They aren’t dumping their bags. Truly, they know something we all should.
Let’s be real, the market’s been a rollercoaster, and fear is rampant. But this? This is a glimmer of hope. I’m not saying it’s a guaranteed moonshot, but it’s a compelling sign that the worst might be behind us. Still DYOR, of course, but keep a DAMN close eye on this.
Knowledge Point: Understanding Supply Held by Entities (SFE)
SFE tracks the movement of ETH held by entities – wallets identified as belonging to exchanges, funds or smart contracts. A declining SFE indicates less selling pressure from these major players.
Essentially, entities represent significant holders, and their behavior is a strong indicator of market sentiment. Lower SFE implies long-term confidence.
This metric doesn’t account for individual retail investors, so it’s just one piece of the puzzle. Combine with volume and other indicators for the whole picture.
Historically, dips below 1 million SFE have coincided with recovery stages. It’s about identifying the potential shift from accumulation to a bullish phase.
