Leading altcoin Ethereum (ETH) has set a record, surpassing $ 420 thousand. According to experts, ETH can continue to rise. So, what are the findings that support this belief?
Ethereum, the world’s second largest cryptocurrency, has seen its all-time high in the past 24 hours. ETH market cap exceeded $ 155 billion. Ether carried its market dominance above 15% with the momentum it caught while the Bitcoin price was standing still.
Although Ethereum has experienced a minor correction after trading above $ 420 thousand, many market experts claim that the rally for ETH is not over. Analysts believe that $ 1,400, which constitutes a significant resistance for the ETH price, could easily be cleared and the uptrend could continue. What are the indicators that give “continue” signals for the Ethereum bull run?
Technical factors say “undervalued”
Some technical factors are giving very positive signals for Ethereum. The number of daily active Ethereum addresses has doubled in the past 12 months, reaching an all-time high of 550,000, outpacing Bitcoin by 50%. At the same time, $ 20 billion worth of ERC-20-based stablecoins were issued in 2020. This reinforced the daily number of active addresses in the network running into record.
It is observed that the number of ETH transactions over 100 thousand dollars is 7 times lower than the previous record was seen in January 2018. According to this framework, many experts state that institutional investors have not yet taken action for Ether. A chart shared by Token Terminal revealed that Ethereum price is showing an all-time low by network fees. According to these indicators, although the ETH price broke a new record yesterday, it is located in the “undervalued” zone.
Whales withdraw, ETH leaves Bitcoin
Ethereum began attracting whales’ funds from exchanges before the ETH price exceeded the record level. This move resulted in a strong upward momentum for the price of ETH, and the Ether supply in the exchanges fell more than 2% from five months ago to position at 22%.
In general terms, ETH price was assumed to track Bitcoin movements. However, Ether may have disturbed this correlation with its acceleration. While the BTC price has dropped close to 4% in the last 24 hours, the ETH price performance has managed to stay ahead of Bitcoin.
According to experts, this trend of Ethereum whales may signal the expectation of a price increase. At the same time, while BTC cannot show a certain bounce, Ethereum’s attack may also indicate that investor interest is divided into the leading altcoin.
Days to CME listing
CME Group, the world’s leading derivatives exchange, announced that it will launch ETH futures on February 8, 2021, with its announcement on December 16, 2020. ETH is the second cryptocurrency to be listed on the CME exchange, after Bitcoin, which generally serves the institutional investor.
With the listing of Ethereum on CME, it is expected to attract the attention of more high-value investors and reinforce its reliability. With this exposure of CME Group investors to Ether, it is predicted that adoption will increase and new discoveries may be made for the price of ETH. CME can act as a channel for ETH to channel corporate capital to the industry.
Apart from these, the increasing interest in Ethereum-backed DeFi platforms and the adoption of decentralized financial services are also claimed to be effective in increasing the price of ETH.