Ethereum looks more attractive to crypto traders than Bitcoin in the current recovery


Share:
  • According to the recent trend of exchange reserve, ETH reserves are dropping faster than Bitcoin, likely to continue ahead of the London Hardfork.
  • Frequent Binance Smartchain rug pulls, and lower gas fees have increased popularity and demand for Ethereum among traders.
  • BTC short open interest persists, the Bitcoin bear market is not over until the shorts are purged.

Ethereum's London Hardfork is approaching, and ETH is leaving exchange wallets faster than Bitcoin. Bitcoin price is recovering from the drop; however, the persistent GBTC discount suggests a shortage of demand. 

Ethereum reserves continue dropping ahead of the London Hardfork

The amount of Ethereum held in all exchanges' wallets indicates the ETH supply available for selling, purchasing, and margin trading. The metric has continued its downward slide that started on June 26 at 20.8 million ETH. As of July 26, the reserves are at 19.7 million.

The dropping reserve is currently a bullish development for the top altcoin since the value of ETH staked in the ETH2 staking contract now stands at 6.4 million. Ethereum leaving exchanges is being staked or stored in private wallets. This signals possible bullish sentiment of traders ahead of the implementation of the Ethereum improvement proposal (EIP) 1559 protocol in the London Hardfork. 

Ethereum all exchange reserves

Ethereum all exchange reserves

There is an increasing interest and demand for Ethereum as rug pulls become more frequent on the Binance Smart Chain (BSC). Earlier in July, the number of unique addresses on BSC reached a new all-time high of over 83 million; the previous significant increase coincided with ETH gas fees recording new highs. 

BSC has suffered over nine exploits in 2021 that accounted for over $370 million in losses. In 2020, the attacks in their entirety cost a staggering $154 million to users on the network. Frequent attacks have emerged as a factor driving several developers and users away from BSC network projects and toward Ethereum. 

The volume of Ethereum staked in the ETH2 contract has increased alongside the increasing frequency of these attacks. The increase in trader interest in the altcoin has made it more attractive than Bitcoin in the current recovery. Though Bitcoin is trading above the $38,000 level, there is still open interest in Bitcoin shorts that have not yet been purged. 

A combination of the open interest in BTC shorts and negative funding rates signals that traders have a bearish outlook. Willy Woo, an independent Bitcoin analyst, recently tweeted

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE’s social dominance and relevance have been increasing since February 20. This week, top cryptocurrency exchanges have shared PEPE and related memes in tweets on their official X handle. 

More PEPE News

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups. The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

More Bitcoin News

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP