After nearly 2 days of consolidation, the world’s second-largest cryptocurrency Ethereum (ETH) is on the move surging another 9% today and moving closer to its all-time high of $1400. At press time, the ETH price is 9% up trading at $1335 levels with its market cap crossing $150 billion for the first time since January 2018.
ETH has made a solid start to 2021! The ETH price is up by nearly 80% since the beginning of 2021, just in the first nine days. If we see the monthly gains, the ETH price has more than doubled! This comes on the backdrop of rising institutional interest in the cryptocurrency as well as all the excitement building up about the launch of CME Ether Futures next month in February 2021.
On the other hand, the on-chain chain improving fundamentals for Ethereum (ETH) and the economics of dropping active supply has helped the price to surge faster. As per on-chain data provider Glassnode, the active supply for Ethereum continues to make new lows. The ETH active supply on a 1-2 year timeframe has hit a new 3-year low of 15.7 million.
The drop in the active supply is a strong indicator for the rising ETH HODLers in the market. Interestingly, another data from Glassnode also shows that the number of addresses holding more than 10,000 ETH coins has reached a new 1-year high. It means that ETH whales are growing in numbers with a very heavy accumulation.
Possibly, just as Bitcoin is consolidating around $40,500 levels, we might see some strong price action in Ethereum. Looking at the current rally in the cryptocurrency market, ETH can move past its all-time high sooner, and maybe later today.