ETH Price Lags Behind Fundamentals With Millions of Ethereum Continuing to Get Locked Up

2021-2-16 16:56

The price of Ether continues to trade around $1,800, with all eyes set on hitting the $2,000 target.

The past week, the price ranged between $1,870 and $1,675 as the market surged to new highs, took a hit, and then went back higher.

All of this volatility has the exchanges having issues on Monday that had the US-based Coinbase experiencing delays in sending ETH and ERC20 cryptocurrencies, which was brought back at normal speeds in about seven hours.

While the exchanges struggled with the volatility, the fundamentals of the second-largest network continue to call for stronger price action.

The network fees are the most glaring and obvious metric that continues to see new all-time highs every other day, helping miners rake in millions of dollars in revenue.

Moreover, Ether’s supply on cryptocurrency exchanges has hit a new multi-year low, with 132,528 ETH moving out of the trading venues in the last 24 hours.

For trader Pentoshi, “this likely signals an end of consolidation in the 3-week range we've been in and likely see the next move up soon.”

Source: Santiment

The supply on exchanges has been aggressively moved off them in an attempt to self custody and in hopes for higher prices in the future.

Much like these ETH, 7.7 million of Ether, up from 6.6 million ETH on Jan. 11, are locked in the decentralized finance (DeFi) sector, whose TVL has reached beyond $40 billion. 3.13 million ETH are also held by the largest asset manager Grayscale.

Another big chunk of these ETH, more than 3 million ETH, has been sent to ETH 2.0 deposit contract for an unknown amount of time.

Amidst this, Ethereum co-founder Vitalik Buterin published a plan for the first hard fork of the ETH 2.0 beacon Chain, tentatively named HF1.

Published Monday, the hard fork aims to add light client support, fix weaknesses that were discovered too late to be fixed at genesis, and test the hard forking mechanism with a relatively small change before larger changes like sharding and merge are done.

Overall, unlike the growing and strong fundamentals, the price has yet to keep pace with them, lagging behind and currently being in the red, under $1,800, up 145% YTD.

Ethereum/USD ETHUSD 1,757.8719 -$60.65 -3.45% Volume 32.94 b Change -$60.65 Open$1,757.8719 Circulating 114.7 m Market Cap 201.62 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=ETH&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~ETH~USD"); The post ETH Price Lags Behind Fundamentals With Millions of Ethereum Continuing to Get Locked Up first appeared on BitcoinExchangeGuide.

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