- ETH’s rock-solid beginning to 2021 with its consistent inching towards an all-time high of $1400.
- The surge involved was 9%, enhancing the total aggregate rise by 80% since the beginning of 2021.
- A direct correlation has been observed between the price surge and a new 3-year low struck by ETH supply.
The world’s second-largest cryptocurrency Ethereum (ETH) is finally on track with a record surge of 9% today, after nearly two days of consolidation. This increment has brought it closer to its record high of $1400. According to the press, the price of ETH is 9% high trading at $1335 levels. Meanwhile, its market cap has crossed $150 billion for the very first time since January 2018.
The momentous high of ETH
The ETH investors are in complete celebratory mode. ETH’s positive appraisal has honoured a remarkable value to its current status in 2021. In just the first nine days, the ETH price has gone up by nearly 80% since the beginning of 2021. If the monthly gains are to be observed, the ETH price remains more than doubled.
The consistency in growth remains contextual to the backdrop of the growing institutional interest in the cryptocurrency. Besides, there is an excitement building up regarding the CME Ether Futures launch happening next month in February 2021.
The complexities behind the price surge
The price surge can be quickly credited to the on-chain chain enhancing fundamentals for Ethereum (ETH) and the economics involved in diminishing active supply.
Glassnode, the on-chain data provider suggested that the active supply for ETH has been continuously reaching new lows. They tweeted the exact figures claiming that the ETH active supply has struck a new 3-year low of 15.7 million, in a 1-2 year timeframe. Hence, the direct correlation between the shopping supple and the price surge cannot be ignored.
The fall in the active supply is a direct hint at the growing ETH HOLDers in the market. The direct correlation between the dropping supply and the price surge Glassnode’s another report also showed that the number of addresses holding ETH coins more than 10,000 has reached a fresh 1-year high. This implies that the number of ETH whales have constantly been swelling with a robust accumulation.
However, it would be interesting to see the potential price action that ETH holds for us in the future, when Bitcoin continues to lead around with $40,500 levels. The current cryptocurrency market’s rally hints at better progress for ETH where it can move past it’s all-time really sooner, hopefully later today.
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