13.5 C
October 4, 2022
Image default

Ethereum price hits 37-month high

The exchange rate of the Ethereum for the dollar rose to 8.72 percent, to $ 740, the level last tested in May 2018. In the intraday period, the pair’s bullish move followed a correction Bitcoin, which on Sunday rose to a new record high of $ 28,377.

Ethereum is consolidating higher in a pattern similar to Cunha. Source: ETHUSD at TradingView.com

Thus, it appears that traders preferred to sell Bitcoin’s top to seek opportunities on Ethereum, whose idiosyncratic fundamentals, including the much-publicized update of the blockchain protocol for proof of participation, also pointed to a long-term bullish outlook. Some analysts agree that the Ethereum price could close above $ 1,000 next year.

Ryan Watkins, senior research analyst at Messari – a data platform with a focus on cryptography, said that institutions could start buying Ethereum in 2021 as they explore profitable cryptography alternatives other than Bitcoin.

It is much easier to jump from BTC to ETH from there ”, he added.

Supply declines of Ethereum

The main foundation behind Ethereum’s wild bullish movements is the classic supply and demand model. Switching to proof of bet means that more people would block their ETH holdings in the Ethereum 2.0 smart contracts to obtain attractive annual percentage yields, thus removing a good supply from the market. And it seems that this is already happening after the protocol update at the beginning of December.

According to the Santiment data analysis platform, Ethereum’s balance on all crypto exchanges has dropped to a minimum of 1.5 years. This usually means that fewer traders are looking to exchange their holdings in ETH for other assets in the short term.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency
Ethereum delivery metrics. Source: Santiment

Meanwhile, Ethereum miners’ balances have also dropped to levels last seen two years ago. This indicates an increasing demand for cryptocurrencies in the over-the-counter and retail markets.

“Both are great validators,” commented Santiment.

Technical Configuration

The biggest bullish catalyst for Ethereum does not come from the US dollar, but from trades tied to bitcoin.

ETH / BTC traders expressed their belief in a medium-term upward trend, as the pair appears to have bottomed out on their longer-term charts. Traditionally, this signals the beginning of the so-called “altcoin season”, in which traders move out of their Bitcoin positions to seek profitability in alternative cryptocurrencies.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency
Ethereum’s weekly close on the BTC pair is signaling a bottom, as presented by Michaël van de Poppe. Source: ETHBTC at TradingView.com

“Closed above the crucial limit of this range, indicating that further upward momentum [irá] occur, and another HL is created, ”noted Michaël van de Poppe, an independent market analyst, adding that it is a“ good sign ”for Ethereum.

Meanwhile, analyst Edward Morra detected a reverse head and shoulder pattern on the weekly ETH / BTC chart. He noted that the technically optimistic pattern could send the pair up by 150 percent.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency
Reverse ethereum head and shoulder pattern, presented by Edward Morra. Source: ETHBTC at TradingView.com

Mr. Morra’s long-term target price for ETH / BTC is 0.05.

Source: NewsBTC

Related posts

ETH Upgrade – HUH Token with Price Recovery

Anupreet Kaur

Stay tuned! XRP could fall strong soon

Anupreet Kaur

There are more than $4.2 billion locked in layer 2 of Ethereum

Anupreet Kaur

Leave a Comment