Many people are keeping an eye on the Ethereum price as of late. Following a renewed surge in momentum, the value of ETH seems bund to surpass $4,000 fairly soon. As the available supply on exchanges continues to dwindle, things are bound to get interesting.
Ethereum Exchange Outflow Spikes
It is always interesting to see how the supply of specific cryptocurrencies on exchanges evolves. For Bitcoin, there is an ongoing supply shortage, even though plenty of liquidity remains on the trading platforms. Ethereum, on the other hand, is doing its own thing. It, too, has a significant outflow from exchanges lately, which can explain why the Ethereum price is going up lately.
Per Glassnode, there is a one-month high for exchange withdrawals. The seven-day moving average now sits at over 1,611 ETH, which is a healthy increase from previous values. Moving more ETh off exchanges can push the price higher, although there is still a long way to go. Ethereum’s supply is very different from Bitcoin’s and will require a much bigger outflow to trigger significant changes.
To figure out why this outflow is rising, it is essential to look at Viewbase. Although some exchanges note an influx of ETH – Bitstamp, Gemini, and Bitmax primarily – all other major trading platforms are in the red. The biggest outflow belongs to Huobi, Kraken, Binance, Bithumb, and others. A very interesting trend that no one expected to see at this time.
All of these withdrawals bring the current outflow to over 94,000 ETH. Although that may seem significant, it is essential to note there is over 21.2 million ETH still on exchanges today. That is over 20% of the circulating Ethereum supply, which is more than sufficient to create market volatility. The coming days and weeks will prove crucial for Ethereum price enthusiasts.
Can The Price Reach $4,000?
It is understandable why many enthusiasts and speculators expect to see a much higher Ethereum price in the future. With $4,000 within reach, an important milestone can be achieved already. However, some people expect to see $5,000 and more before the end of the year, which may prove to be out of reach, depending on how the market evolves.
Interestingly, the Ethereum price is not influenced by the Bitcoin price momentum in the slightest. The world’s leading cryptocurrency is still well below $60,000 and seems unable to go past this barrier, for now. It is still too early to talk about an “altcoin season”, yet ETH seems to pave the way for bigger and better things.
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