Where is Ethereum (ETH) Price Going Next?

Original link:

https://www.finder.com/ethereum-price-update-03-02-2021

Original link:Shiraz JagatiEditor's Note: This article is from Finder Author:

, compiled by the Apifiny team

Currently, Ethereum (ETH) is performing strongly and has a promising future. Analysts predict that ETH’s bull run will continue.

After ETH hit an all-time high breaking through $1,500, there was a lot of buy orders in the Ethereum options market.

The supply of ETH and BTC on various exchanges has been decreasing at an alarming rate, especially after ETH broke through $1,500 on February 2.

Lately, while many have been predicting an altcoin boom, the market has been somewhat sluggish.

Investors in ETH have been very excited over the past week. On February 3, ETH rose from $1348 to a relative high of $1557. In the past 24-hour trading cycle, the profit of ETH was about 13%. It is worth mentioning that despite the recent volatility in the overall market, ETH has still risen by more than 56% in the past 30 days.

As you can see, for more than a week, ETH has been testing its all-time high price, but every time it is close to breaking through $1,420, it will face a correction. In fact, ETH did not fully explode until after the fourth retest, and it is currently at a suitable point.

ETH is showing a momentum of rapid growth. According to data released by the encryption futures and options exchange Deribit, the current bulls seem to be in control of the market, and the ETH options market has also been flooded with buy orders, which is usually regarded as a sign of a better financial trend in the future."In this regard, Haohan, CEO of Apifiny, a digital asset trading platform, expressed his views. He believes that there is no doubt that ETH will continue to soar in 2021. As the DeFi market and the entire new ecosystem continue to flourish, the market's demand for ETH will also increase, which means that the currency has almost become the DeFi market. synonymous with."In addition to the recent bull market and the significant impact of the DeFi boom last year, the number of tokens linked to BTC on the Ethereum blockchain such as WBTC, HBTC, and renBTC has reached an all-time high (ATH), with a total of more than 160,000 BTC. This is a sign of increased activity on the Ethereum network and continued strong growth in DeFi.

Haohan added."As the network moves to POS, and the current network can process transactions at a rate comparable to MasterCard/Visa, it is also an important reason why the price of ETH will rise in the short to medium term."

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As the size of the ETH market continues to expand to new heights, more and more people are taking custody of their crypto holdings instead of storing them on centralized exchanges. Statistics from CryptoQuant, an encryption analysis company, show that in the past month or so, the amount of ETH held by all centralized exchanges has continued to plummet to historical lows. After ETH hit the $1,500 mark on February 3, centralized exchanges The amount of ETH held has even dropped sharply.

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Comparison of ETH price and reserves in various centralized exchanges

This trend may be driven by the rise of DeFi, growing awareness of ETH2.0 (staking), and a surge in institutional interest in the coin. It is also worth mentioning that as of February 3, the total locked volume (TVL) of all DeFi platforms has reached 29.71 billion US dollars, an increase of more than 95% since January 1, when the locked value was only 155.3 One hundred million U.S. dollars.

Altcoins hold on, ETH's highlight moment has arrived.

Recently, many analysts have claimed that a new investment season is coming, but a closer look shows that only Cardano and XRP have performed well in the past week, and the value of the latter is known to be heavily manipulated by amateur investors.

In this regard, Haohan pointed out that although we may see some Altcoins competing with BTC and ETH for market dominance in the future, in the short term, most of these assets will not come close to the heights they reached during the 2017 boom.