Ethereum (ETH) Could be Prepping to Set a New All-time High
- Ethereum could set a new all-time high if the $1,350 resistance is broken
- Ethereum’s path to a new ATH was briefly interrupted by Bitcoin dropping to the $31k level
- ETH could peak with the CME Ethereum futures being launched on the 8th of February
- On a fundamental level, crypto exchanges seem to be running out of Ethereum
Ethereum is once again closing in on the 2018 all-time high of $1,432. At the time of writing, Ethereum is trading at $1,230 in what looks like an attempt to test the $1,350 resistance that ETH was unable to break on the 10th of this month. The latter Ethereum price is a three year high. However, as soon as it was achieved, ETH fell by 32% to as low as $913. The dip by Ethereum was due to Bitcoin crashing from $41k levels to the $31k support zone.
Ethereum Investors were Quick to Buy the Dip
Ethereum’s stay below $1,000 was short lived as the dip was quickly bought up by ETH investors. The quick buying of Ethereum has led the team at Crypterium analytics to conclude that traders are particularly enthiastic about ETH. They explained their observation as follows.
…Ethereum, the price of which briefly dropped below $1,000 and even reached $900…at this moment the buyers became more active and returned the price above $1,000. This is a good moment for Ethereum and suggests that a large number of market participants continue to believe in this coin.
Ethereum Needs to Break $1,350 To Set a New ATH
Additionally, the analysts at Cryterium point out that $1,350 needs to break for Ethereum to set a new all-time high. They also pointed out that the listing of the CME Ethereum futures on February 8th will provide the momentum for ETH to do so.
We believe Ethereum will be able to establish a new ATH in the coming weeks. Growth could continue until early February, when CME promised to add Ethereum futures. In this case, the price can go up for quite a long time and even reach the range of $1,800 — $2,000.
Crypto Exchange Reserves are Running Low on Ethereum
With respect to on-chain fundamentals, crypto exchanges are currently running low on their Ethereum reserves. This fact was highlighted by Alex Saunders via the following tweet.
Exchanges could be out of $ETH within 48 hours. Demand has sky rocketed. Exchange reserves fell 20% from 10M to 8M in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range. ??️? #ETH2 #DeFi #NFTs #Gaming #DAO pic.twitter.com/rYPOch2u7p
— Alex Saunders ???? (@AlexSaundersAU) January 14, 2021
The drastic reduction of Ethereum stored on crypto exchanges could be due to investors storing their ETH offline in anticipation of gains in the weeks and months to follow. Therefore, Ethereum could very well be on a path towards setting a new all-time high.
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