Ethereum registered a new ATH at $ 2000 yesterday and at the time of writing this article has dipped slightly in the price charts. The price has risen over 5% in the last 24 hours and over 12.5% in the last week and recent price action has retail traders wondering if this is Ethereum’s way of make up for those who missed out on an opportunity when Bitcoin traded at a fairly low price last year.
Evolution of Ethereum
Since the price of Ethereum has reached a new high, one of the key indicators that point to the direction of the price increase is the total number of transactions. Based on data from the Etherscan chart, the total number of transactions on the ETH network is currently close to crossing the ATH of 1.4 million which was recorded in September 2020. Currently the number of transactions is 1.29 million, and is increasing.
In order for the price to hold near or above $ 2000, the trade volume should ideally hit a new ATH. The price of the asset has risen by over 160% since the start of 2021, allowing the asset to compete well with Bitcoin, which has a return on investment of over 90% since the start of 2021. Major altcoins posted double-digit gains, however, a pullback followed and price swings have occurred more than twice since January 2021.
In the case of Ethereum, the price drops are less intense. And the trend is likely to continue with the price hitting higher levels without serious short-term corrections. Similar to the case of Bitcoin, Ethereum is drawing value from the shortage of supply. And Ethereum’s exit from exchanges is increasing.
Based on the chart above, the outflow has been increasing since the start of February 2021. Although it is smaller compared to January 2021, the current outflow is at the same level as the fourth quarter of 2020. The outflow indicates that Ethereum is leaving the exchanges for private wallets or cold rooms, and this may help Ethereum by propelling it to another ATH. Chain analysis is neutral, however, $ 2,000 could be here to stay, until Ethereum hits another near-term high or prices rise further.
To congratulate you we are going to offer you our free method to invest in cryptocurrencies simply and automatically with the objective of generating regular income while protecting your capital as much as possible.