Analyst: Ether (ETH) Set to Hit New ATH as Reserve Plunge on Exchanges
Crypto analysts have predicted that the price of ether (ETH) may reach another all-time high in the coming weeks, if the current plunge of ETH reserves on centralized exchanges is anything to go by.
Ether Reserves Fall by 27 Percent in 48 Hours
It’s no longer news that the bull market is upon us once again! The price of the world’s flagship cryptocurrency, bitcoin (BTC) recently surged to an ATH of $41,946 for the first time in its existence, before settling around the $38k price region. Altcoins have not done badly themselves, as the value of a good number of them have surged significantly this season.
In the latest development, Alex Saunders, the CEO and Founder of Nuggets News, a digital media channel that’s focused on delivering the latest developments in the cryptospace and other financial markets, has taken to Twitter to hint that centralized exchanges could run out of ether soon, due to massive demands from hodlers.
Saunders noted that the ether reserves of centralized exchanges fell by a massive 20 percent from 10 million to 8 million ETH within a few hours today, having previously dropped by 10 percent on January 14.
Notably, data from other crypto markets data providers have also confirmed that traders are actively stacking up on ether, as exchange balances have decreased by 42.5 percent since hitting an ATH of 14.1 million ETH in May last year.
According to crypto market statistics on Glassnode, ether reserves on centralized exchanges has hit its lowest ebb since July 2018. At press time, centralized exchanges hold only a meager seven percent of ether’s total circulating supply.
Against that backdrop, Saunders believes that the price of the world’s second-largest crypto could hit new ATHs in the coming weeks.
“We all know what happened when demand outstripped the supply of $BTC. It quadrupled in 90 days,” added Saunders.
With ETH 2.0 staking set to go live shortly, the attention of some crypto enthusiasts has shifted from bitcoin to ether, as data available on crypto market data aggregator, Into The Block has revealed that ether’s bid-to-ask volume has a nine percent imbalance, a strong indication that the bulls are firmly in charge of the token.
At press time, the price of ether (ETH) sits at $1,226.68, with a market cap of $140.19 billion, as seen on CoinMarketCap.