Ethereum’s ETH may be the first to achieve a new all-time high, before Bitcoin, according to analysis. On Wednesday, the CEO of on-chain analytics service CryptoQuant, Ki Young Ju, highlighted in a tweet a sell-side liquidity crisis that could give ETH an edge over BTC.
— Ki Young Ju 주기영 (@ki_young_ju) August 18, 2021
Bitcoin has since recovered over 50% from its lows of $29,000 and altcoins have joined the rally. Ether is not an exception to this rally, as the largest altcoin has recaptured the $3,000 level. As of this week, this level is now in the process of being retested as support.
Although a lot of attention is on Bitcoin reclaiming the $50,000 mark, there is a lot of excitement over Ether, which has maintained its price after its successful London hardfork. The hardfork that was deployed earlier this month shows the state of the altcoin, and the enthusiasm from the community.
The hardfork has pushed supply changes resulting to a liquidity shortfall that could potentially serve to push ETH/USD to new historic peaks before BTC/USD. According to Ki Young Ju, current ETH price is closer to ATH compared to BTC.
Numbers show that Bitcoin exchange reserves have been declining since May and only returned in July. However, the reserves declined to 2.44 million this week from a peak of 2.54 million in July 26. On the other hand, ETH has experienced a relatively linear downtrend since late May’s local high of 21.43 million held on exchanges. The exchange balance is currently around 19.25 million.
$ETH reserve for all exchanges keeps downward trend, renewing two-year low.
— CryptoQuant.com (@cryptoquant_com) August 18, 2021
Ki is not the only one forecasting a wilder bull charge for Ether compared to Bitcoin. Bloomberg Intelligence has also been in favour of ETH over BTC in a recent post by forecasting a “flippening” of the largest cryptocurrency.
Data has also indicated that Bitcoin will undergo a supply shock in the near future, an occurrence that has its own historical precedent for initiating BTC price run-ups. Analyst William Clemente III made comments on the latest figures from Glassnode, an analytics resource, stating that illiquid supply shock ratio had been a good leading indicator the past few months.
Illiquid Supply Shock ratio has been a good leading indicator over the past few months. Impulses in both directions have resulted in price action following.
As the metric continues to grind slowly upward, currently at levels prev. 58K BTC, watching for another major impulse. pic.twitter.com/qjwB2sT4Ot
— Will Clemente (@WClementeIII) August 17, 2021
He stated that impulses in both directions have resulted in price action following. The metric continues to grind slowly upwards, hence another impulse is likely to be imminent.
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