Ethereum Passes $1,700
• Ethereum briefly surpassed $1,700 on February 2, soaring more than $500 since the start of the year.
• Supply of ETH on exchanges have fallen to their lowest levels since June 2018.
• Some analysts suggest a local top may be in play with major ETH profit taking and availability of ETH supply on exchanges forming a gap.
Supply and Demand
The market intelligence platform Santiment identified several key points that suggest a local top may be in. The chart overlaid 3 key metrics: Price (ETH), Ratio of daily on-chain volume in profit loss (ETH) and Supply on exchanges (as % of total supply) (ETH). It found that there is a large gap forming between major ETH profit taking and the availability of ETH supply on exchanges. On February 2, major ETH profit taking hit its highest level since February 2021 while the same day, ETH supply on exchanges fell to below 11.25%, their lowest level since June 2018. This may point to a local top forming into the weekend with ETH currently stable at around $1,640.
Some analysts say the bullish activity on Ethereum may be short-lived due to the factors mentioned above, suggesting a local top could form soon. However other experts remain optimistic about Ethereum’s price growth potential as well as its utility for decentralized finance applications such as trading platforms and smart contracts.
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Overall Ethereum has seen significant price growth over recent months while also seeing decreased supply levels on exchanges which could indicate an upcoming local top formation although some optimism remains among experts regarding Ethereum’s future possibilities in DeFi applications or trading platforms. CryptoSlate has provided readers with an easy solution for connecting wallets and trading via CEXs + DEXs aggregated through Orion without needing an account or global access via their Orion Swap Widget.