Total Market Cap
While the price of Bitcoin has been moving in an ascending triangle for the past few days, Ethereum has gained financial momentum and has surpassed the all-time high that was made in Jan 2018. The price of Ethereum surpasses the $1,420 all-time high for the first time in two years. ETH hits $1,440 price during early trading hours of today and it is hovering around that price at publishing time.
More upside movement is expected with the current momentum and analysts have started comparing the performance of Bitcoin after it surpassed the 2017 high of $20,000 late last year. Bitcoin gained more than 110% after it surpassed 2017 high as it hit $41,000 at the beginning of the year.
As reported by Cointelegraph;
"It’s interesting to note that unlike Bitcoin (BTC), Polkadot’s DOT and Chainlink’s LINK, as well as a host of other decently sized altcoins, ETH is one of the few premium digital assets to have not surpassed and stuck above its ATH through the course of this current bull cycle. According to some, the currency’s macro trend outlook looks “ridiculous bullish,” and if the currency can close above its previous ATH value, it’s touted to quickly ascend to around the $2,800–$3,200 region."
The price of Ethereum was ranging between $500 - $650 for most of late last year before it broke out of the range during the general surge in cryptocurrencies at the beginning of the year. ETH saw a %100 increase in a matter of days as it broke out of the range. ETH rallied to $1,352 high before cryptocurrencies saw a flash crash at the beginning of the last week. With Ethereum regaining momentum and now surpassing an all-time high, the $2000 - $3000 price level is not quite far away.
If the current bull run continues and with no loss in the crypto market, ETH is going to add more gains as investors are still holding due to what Bitcoin did after it surpassed its 2017 high.
According to a report on Cointelegraph, the potential rise of ETH shortly could be due to the fact that the cryptos' reserves across all centralized exchanges have plummeted, which indicates an increase in the demand of the altcoin. In this regard, data available online shows that exchange reserves for ETH fell by 20% from 10 million to 8 million, between Jan. 14 and 15. Aside from that, information released by Glassnode shows that Ether reserves on centralized exchanges are currently at low levels that have been seen since July 2018.
To get a better understanding of why ETH is flowing off exchanges at such a rapid pace, Justin Barlow, research analyst for digital assets data provider The Tie, pointed out to Cointelegraph that the ongoing offloading could mean that ETH is now starting to move to “stronger hands” — i.e., players who may not be looking to sell their holdings for instant liquidity, adding:
“This includes funds, token development teams, and retail investors. While this is not a clear indicator, we are likely to see this trend continue as more regulated ways to purchase ETH are introduced such as the Grayscale ETH Trust or the 3iQ ETH fund that have multi-month lockup periods.”
The total market cap of Ethereum now sits at $163 Billion, according to data from CoinGecko. With the increasing interest in the second-largest cryptocurrency and the surge in the price of ether, the total market cap could go above $200 Billion in 2021.
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Tobi is a full time day/swing trader with 3 years’ experience in the currency and commodity market. He is interested in cryptocurrencies in combination to the current financial system. Tobi holds a bachelor's degree in Agriculture.