Lorenzo Stroe
Independent Analyst
- Ethereum price is fighting to stay above $1,300.
- The scarcity of the digital asset continues to increase as a lot of coins have been locked.
- ETH faces very little resistance to the upside and can quickly establish a new all-time high.
Ethereum price has been under consolidation after establishing a new all-time high at $1,475 which wasn’t quite convincing. ETH dropped to $1,207 but has rebounded and it’s currently trading at $1,338.
Ethereum price can reach $2,000 as its scarcity continues to increase
Despite the massive increase in price experienced by Ethereum since August 2020, the number of ETH coins inside exchanges has declined significantly. This percentage has dropped from 26.2% of the circulating supply to only 20.7% currently.
%20[22.37.21,%2028%20Jan,%202021]-637474675366953321.png)
Ethereum supply on exchanges
This metric shows that investors are withdrawing their coins from exchanges to either lock them into DeFi protocols or to hold. The Eth2 deposit contract holds 2.85 million ETH and there are currently 7.09 million ETH locked in DeFi projects, which means close to 10 million Ethereum are locked, representing close to 10% of the circulating supply.
%20[22.40.57,%2028%20Jan,%202021]-637474675396955946.png)
ETH Holders Distribution
Similarly, the number of large holders with 10,000 to 100,000 ETH coins ($13,000,000 to $130,000,000) has increased from 961 on October 2020, to 1,080 currently. Again indicating that whales are interested in accumulating ETH despite its price growing.
ETH/USD 4-hour chart
On the 4-hour chart, Ethereum has established an ascending triangle pattern with the resistance trendline located at $1,430. A breakout above this point can drive ETH up to $1,900 or higher.
ETH IOMAP chart
The likelihood of Ethereum cracking that resistance level seems quite high according to the In/Out of the Money Around Price (IOMAP) chart which shows very weak resistance above $1,340, but a lot of support between $1,300 and $1,340 with a volume of almost 9 million ETH, purchased by 464,000 addresses.
ETH/USD weekly chart
Nonetheless, the TD Sequential indicator is close to presenting a sell signal on the weekly chart. This could stop the bulls from pushing Ethereum to new all-time highs driving it to re-test the psychological level at $1,000.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
MANTA suffers 4% pullback after unlocking tokens worth $40 million
Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks.
XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says
The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30.
Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction
Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000.
If Bitcoin restarts bull run, these altcoins are likely to explode Premium
If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.