Ethereum follows its upward path and could spike a new ATH
Ethereum registered a new ATH at $ 2,000 yesterday and at the time this article was written it fell slightly on the rate cards. The price has risen more than 5% in the past 24 hours and more than 12.5% in the past week and the recent price action is causing retail traders to ask if this is Ethereum’s way of making up for those who missed opportunities.
Once the price of Ethereum has reached a new high, one of the main metrics that indicate 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 that was recorded in September 2020. Currently, the number of transactions is 1.29 million and is increasing.
In order for the price to remain close to or above $ 2,000, turnover must reach a new ATH. The asset price has increased by more than 160% since the beginning of 2021, and this makes the currency compete well with Bitcoin, which has an ROI of more than 90% since the beginning of 2021. However, the major altcoins registered double-digit gains, followed by a setback and price fluctuations that have occurred more than twice since January 2021.
In the case of Ethereum, price retractions have been less intense and it is likely that the trend will continue with the quotation reaching higher levels without major corrections in the short term. Similar to the Bitcoin case, Ethereum is deriving value from the scarcity of supplies and Ethereum’s outflow from exchanges has increased.
Based on the graph above, the outflow has increased since the beginning of February 2021. Although it is lower compared to January 2021, the current outflow is at the same level as the fourth quarter of 2020. The outflow signals that Ethereum is leaving exchanges for private wallets or cold storage, and that can help Ethereum, propelling it to another ATH. The on-chain analysis is neutral, however, $ 2,000 may be here to stay, until Ethereum reaches another short-term peak or the price goes up further.