ETH’s unstoppable rally keeps on going into uncharted territory as the coin moves above $4000 so let’s see more in our latest Ethereum news today.
The cryptocurrency was on a never-ending price discovery this year and the outlook remains bullish with predictions now seeming conservative. ETH’s unstoppable rally lead the coin to trade at $4162 with a 9.3% in the daily charts while on the weekly and monthly charts, ETH saw a 41% surge. The market capitalization stands at $480 billion after the $1878 rally in the 1-year chart.
The data provided by Ki-Young Ju, who is the CEO of Cryptoquant, suggests that the institutions are behind the rally and as shown in the charts, ETH’s price has been on the rise with outflow transactions growing. Unlike 2018, when ETH reached a previous ATH near $1500, there was a rise in inflow as well with transactions counting for the exchanges. This suggests that investors are long-term bullish on further appreciation as Ju said:
“Still incredibly fewer $ETH deposits and more withdrawals across all exchanges. It’s hard to say we’re at the top. Increasing exchange withdrawals could indicate #Ethereum ecosystem is growing and people are holding them, not selling.”
Additional data provided by Ju claims that the rally could be fueled by institutional buyers and Coinbase Pro for example has been one of the institutions to enter this market along with Tesla and Microstrategy that bought BTC in the past. Coinbase Pro premium skyrockets when the institutions make their purchases which are reflected on the crypto’s price. Ju pointed out that the premium has risen with ETH’s price since 2020. Chief Investment Officer at the Moskovski Capital, Lex Moskovski claimed that ETH buying came from spot buyers, and in the futures markets, the funding rate remained low despite the constant appreciations which show potential sustainability as Moskovski said:
“Compared to the slope of the price curve and the funding rate of the previous run-ups it’s almost nothing.”
Glassnode recorded a new all-time high in the number of addresses that hold 1+ ETH with a total of 1,224,176 which could suggest that the retail investors are buying ETH when the price surged with this metric. ETH realized the price reached a new ATH with $1068. All ETH-based markets experienced record activity in futures, spot,s and options as Skew revealed.
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