The active supply of Ethereum (ETH), measured on a 6-12 month timeframe, has dipped to its 17-month low.

Data fetched by Glassnode shows that there are now over 15.1 million ETH available for accumulation even as the demand for the cryptocurrency grows ahead of its much-awaited protocol migration to proof-of-stake. At its periodic high, the active supply was almost near 40 million.

Ethereum Total Supply Last Active 6m-12m: Source: Glassnode Studios

In retrospect, the metric above underlines the amount of circulating supply last moved between 6 months and 12 months.

HODL

A dropping figure shows an increasing amount of “HODLING” behavior among Ethereum investors/traders. Meanwhile, if the demand for Ethereum grows higher during the period of dipping, the cryptocurrency’s price occasionally moves north, as shown in the chart above.

Glassnode fetches the demand-side data from a different chart, known as HODL Waves. The unique metric reflects the rate at which traders/investors are holding Ethereum. An increase in the figure means a dismissive selling sentiment over the long-term. Else, a strong bearish bias altogether.

Each colored band shows the percentage of Ethereum in existence that was last moved within the time period denoted in the legend. Source: Glassnode

The data suggests that many investors accumulated Ethereum tokens in 2019. It now amounts to more than half of the cryptocurrency’s existing supply that has not changed hands in the last 12 months. It further points to less available stock in the days leading to Ethereum proof-of-stake this year.

“With the ETH2 phase 0 approach, it’ll be interesting to see how much this percentage comes down by as Ethereum OG’s move their stash into staking,” said Anthony Sassano, the co-founder of EthHub. “I’m particularly curious to see if any of the coins in the 5+ years category move.”

Ethereum Price Outlook

On the supply-side alone, the prospects of Ethereum hitting a new yearly peak is higher. As more and more tokens go out of circulation, and its demand among the looming traders/investors grow – partially as they use ETH for staking or hold it as a hedge against inflation – the ETH/USD could rise further.

Ethereum holding the ascending trendline as support in its 2020 rally. Source: ETHUSD on TradingView.com

So far, Ethereum has played the narratives in favor of bulls. The cryptocurrency is up 328 percent from its mid-March low – and with the same fundamentals around, it may head even further higher into the year.