Ethereum price poised for greatness as on-chain metrics suggest move to $2,000 is approaching


  • Ethereum price has been underperforming again in the past two weeks.
  • The digital asset has not been able to keep up with Bitcoin.
  • On-chain metrics remain in favor of Ethereum and continue to strengthen.

On January 14, Ethereum price had a significant spike and started to outperform Bitcoin for the first time since July 2020. However, the trend didn’t last long and ETH started to fade away in February despite Bitcoin price also falling. 

Ethereum price could still jump to $2,000 thanks to on-chain metrics

One of the main strengths of Ethereum is the fact that a significant number of coins are locked away from exchanges. The Eth2 deposit contract holds over 3.35 million ETH and the total sum of Ethereum locked in DeFi protocols and projects exceeds 8.45 million which means that 11.8 million ETH are not on exchanges.

eth price

ETH fees chart

According to a recent report by Santiment, spikes in Ethereum fees can often represent local bottoms. Ethereum just had a significant spike in fee prices, which indicates that perhaps the digital asset is ready for a bounce.

eth price

Eth supply not moved

Even more interesting, is the fact that about 20% of the circulating supply of Ethereum has not moved on-chain in over 3 years. This indicates that many investors are not interested in selling just yet despite Ethereum price hitting new all-time highs.

eth price

ETH/USD 12-hour chart

On the 12-hour chart, Ethereum has formed a huge expanding wedge pattern and defended its lower trendline support on February 28. A rebound from this point could quickly drive Ethereum price towards $2,100. 

eth price

ETH IOMAP chart

The In/Out of the Money Around Price (IOMAP) chart adds credence to this outlook as it shows practically no strong resistance levels above $1,600. The most critical support level is located around $1,450.

eth price

ETH 12-hour chart

The IOMAP also indicates that the area between $1,451 and $1,499 is robust. A breakdown below this point would have a bearish price target of about $885.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

China considers Bitcoin and cryptos as investment tools, VET and NEO prices soar

The deputy governor of the People’s Bank of China stated that Bitcoin and cryptocurrencies are investment tools. China will issue new regulations in the future as stablecoins are gaining traction as payment solutions. VeChain and NEO prices soar as the recent announcement was made.

More Bitcoin News

The Graph Price Prediction: GRT bulls’ 30% upswing to face stiff resistance levels

The Graph price recently broke out of a descending parallel channel indicating a 30% bull rally on the horizon. Transactional data shows that $1.80 holds a massive concentration of underwater investors that could hamper the upswing.

More The Graph news

Cosmos Price Prediction: ATOM to restart its 85% advance

Cosmos price is consolidating inside a bullish pennant pattern, targeting an 85% upswing. ATOM needs to clear the 12-hour supply zone ranging from $26.18 to $28.64 to establish a bullish outlook. A decisive close below $16.37 will invalidate the bullish outlook.

More Cosmos news

XLM Price Prediction: Stellar bulls prepare for 200% advance to new highs

XLM price tapped the lower trend line of an ascending parallel channel during the recent crash. A continuation of the bounce from this level shows the promise of a 200% bull rally to $1.42, a new all-time high. Stellar could start a new downtrend if the lower range of the demand zone at $0.40 is shattered.

More Stellar Lumens news

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast

BTC

ETH

XRP