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Ethereum Analyst Sees Record High This Week as Price Climbs 60%

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Yashu Gola



The cost to purchase one Ethereum might exceed its previous record high this week.

That is, according to Josh Rager. On Monday, the independent market analyst said that he sees ETH/USD making a run towards the $1,250-1,350 area as resistance. Meanwhile, a clear breakout move above the said range would have the pair test its January 2018 high of $1,419.96.

“The final target is $5k for me in the next year,” added Mr. Rager. “But now – the target to hit is $1,250 to $1,350 is resistance.”

What Pumped Ethereum?

Mr. Rager’s statements surfaced in the wake of Ethereum’s volatile price rally over the weekend and Monday. It surged by almost 60 percent, hitting $1,168.99 before turning lower towards $1,000 in its opening week move. Meanwhile, its market capitalization climbed to near $119 billion, making 13.68 percent of the overall cryptocurrency market valuation.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Ethereum breaks above key Fib resistance areas. Source: ETHUSD on TradingView.com

It is not clear what specifically caused the Ethereum bull run, but many analysts agreed that its gains emerged as a part of a so-called altcoin season.

ETH/USD’s upside moves matched sentiments across other top assets (except Bitcoin). For instance, Litecoin’s LTC climbed 11.50 percent on a 24-hour adjusted timeframe. Chainlink’s LINK surged 15 percent, while Cardano’s ADA and Bitcoin Cash’s BCH jumped 21 percent and 15 percent, respectively.

Meanwhile, leading cryptocurrency Bitcoin corrected by approx 9 percent after hitting its all-time high near $34,500 on Sunday. Its market capitalization also slipped from 72 percent to 68.89 percent, signaling that traders decided to sell its top to seek opportunities in the altcoin market. It benefited Ethereum.

Long-term Speculation

Ethereum also drew its bullish cues also from the anticipation of higher demand as its active supply runs dry.

Ki-Young Ju, CEO of South Korea-based blockchain analytics platform CryptoQuant, stated that the ETH reserves across all the cryptocurrency exchanges have decreased by 20 percent since May 2020. He noted that the supply might be going into decentralized exchanges, staking contracts, and self or third-party custodial wallets.

“It seems the sell-side liquidity crunch started to hit ETH just like the BTC market,” Mr. Ju tweeted.

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Ethereum All Exchanges Reserves. Source: CryptoQuant

Data fetched from EtherScan shows that Ethereum’s very-own smart contract that powers its recent upgrade to proof-of-stake has locked about 2.2 million ETH out of supply. It is equivalent to $2.33 billion at the press time.

“Almost 2 percent of ETH supply is staked on the ETH2 deposit contract. I think this illiquidity makes the ETH price goes higher in the long-term,” stated Mr. Ju.

Meanwhile, ETH locked inside DeFi pools is about 6.97 million, according to separate data provided by DeFi Pulse.





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Ethereum

Ethereum’s realized cap spikes to record highs as capital floods in: Report

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Cointelegraph By Samuel Haig

Ethereum’s realized capitalization has increased by nearly 50% in January so far to tag new all-time highs above $70 billion, according to CoinMetrics.

The data shows that Ethereum’s realized cap has more than tripled since dropping below $25 billion in during March 2020’s “Black Thursday” crash..

Ethereum’s realized cap: CoinMetrics

The realized capitalization metric calculates the value of a crypto asset’s supply according to when each unit last moved on-chain. The indicator seeks to estimate the price actually paid for each ETH in circulation — rather than simply multiply the current price by the total supply as market cap does. However, realized cap cannot account for coins that are only traded on centralized exchanges and do not move on-chain.

The indicator is designed to offer a way to compensate for lost or unclaimed coins by ignoring their appreciation from the time each unit was last transferred on-chain.

By ignoring the fluctuating capitalization of dormant coins, realized cap offers a signal for when new capital is flowing into a given market, with CoinMetrics inferring that many new investors may have been buying the bags of seasoned ETH whales during January’s bull market.

The report also noted a 5% spike in the number of Ethereum addresses holding more than 10,000 Ether, with 1,241 wallets currently holding $13.8 million or more in ETH. As such, CoinMetrics concludes that “institutional investors are starting to buy ETH.”

The growth of Ethereum’s realized cap appears to have outperformed that of Bitcoin’s last year, with Glassnode reporting that BTC’s realized cap had grown 50% since the beginning of 2020 as of Dec. 15. CoinMetrics’ data indicates Ethereum had seen an 85% increase over the same period.

Blockchain Center’s Flippening Index currently estimates that Ethereum is 71% of the way to surpassing Bitcoin according to eight key metrics — comprising a new all-time high for the indicator.

The index notes Ethereum has already surpassed Bitcoin by transaction fees and transaction count, and estimates that transaction volume and node count are at 99% and 97% of Bitcoin’s respectively.