Ethereum Price Analysis: Can ETH Continue to Climb?
Bullish on-chain Ethereum data
With Ethereum unable to outperform Bitcoin in recent weeks, many altcoins have also experienced less significant price surges. Nevertheless, Ethereum’s price has seen a 10 percent increase compared to the previous week. Furthermore, on-chain data suggests positive insights for the future.
Reduced supply on crypto exchanges
One bullish sign for Ethereum is the decreasing amount of Ether available on crypto exchanges, currently reaching a new low of 12.6 percent. Data from Glassnode reveals that there has been a significant outflow of Ether from these exchanges in the past 30 days. A reduced supply on exchanges indicates that there are fewer coins available for selling, contributing to potential price appreciation.
One reason for this outflow is the recent lawsuit filed by the US Securities and Exchange Commission (SEC) against Binance and Coinbase. This legal action caused fear among investors, leading them to withdraw their Ether to their personal wallets as a precautionary measure.
In addition, Ethereum staking has become increasingly popular since the Shapella update, which allows users to withdraw ETH from staking contracts. Since the hard fork, over 3.9 million ETH has flowed into staking contracts.
According to Glassnode, the total value currently being staked has reached an all-time high of approximately $47.3 billion. The more coins that are staked, the lower the liquid supply becomes, which is considered positive for the Ether price.
ETH exchange rate
Last week, Bitcoin reached a new annual high of nearly $31,500, while Ethereum remained around 10 percent below its previous peak on April 16. During that time, Ethereum surged to a high of $2,141 but failed to break above $1,936 this time.
Despite the positive on-chain data, it is important to acknowledge that various factors influence the price of Ethereum. Ultimately, the performance of Bitcoin in the coming period will significantly shape Ethereum’s future.
However, the overall market sentiment has greatly improved in recent weeks. It will be interesting to see if Ethereum can overcome the psychological resistance level at $2,000 and soar to new yearly highs.
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