- The ETH/USD pair retested its previous all-time of $4,390.
- Sustained whale accumulation fuelling Ether’s bullish run.
- Analysts predict ETH hitting a $40,000 price by June 2022.
KOLKATA (CoinChapter.com) – Bitcoin hitting new all-time rubbed off on the number 2 cryptocurrency, as bulls pushed Ether to retest its previous all-time high of $4,390. The move came after Ethereum’s native crypto asset closed above the $4,000 amid a market-wide rally on Wednesday.
Ether continued its near-direct correlation with Bitcoin. The 30-day correlation between the top two cryptocurrencies sits at 0.80, implying an 80% probability that BTC and ETH will move in tandem in the coming sessions. And Ether’s accumulation trend remained strong amongst top Ethereum whales.
Super Rich Ethereum Holders Added More ETH To Their Stash
Ether’s rising bullish trend-led “billionaire ETH holders” to scoop up 2.5% of the second-largest cryptocurrency by market cap in 10 weeks, the crypto market insights provider, Santiment, noted.
“In the past 10 weeks, addresses with 1M to 10M $ETH have accumulated 13.9% more to their bags.”Santiment observed in a latest tweet
The bullish billionaire ETH accumulation trend followed the exponential growth of 1+ ETH holding Ethereum addresses on the back of the Ether supply scarcity feature that kicked in through EIP-1559 activation. To date, EIP-1559 removed 589,000 Ether tokens worth ~$2.5 billion permanently from ETH’s net circulating supply.
Massive accumulation on all fronts triggered an ETH supply crisis across all cryptocurrency exchanges as well. Data from CryptoQuant, another crypto market analytics firm, showed a consistent decline in ETH reserves across all exchanges. Ether depletion on crypto bourses compensated for an increased inflow into the Ethereum 2.0 deposit contract.
Five-Figure Price Predictions
Also, long-term investors moved all their recently bought holdings to private wallets. All in anticipation of sporadic upside moves in the price of Ethereum’s native asset. Predictions calling for a $40,000 ETH further added fuel to the rising HODLing sentiment.
“And ETH…bigger move…$40k by March/June would only be 1 standard deviation overbought versus trend.”said RealVision founder and macro investor, Raoul Pal
Pal further added that the above ETH price call is a “probabilistic outcome.”
“For me, $20k ETH and $200k BTC is a shoe in (70% + chance) What outperforms and how this plays out is anyones guess…”
Crypto analysts at Standard Chartered have called for the ETH/USD pair to range between $26,000-35,000 soon. But Bitcoin would have to be worth $175,000 for Ether to achieve the said target price range.
According to Tom Lee, co-founder of Fundstrat Global Advisors, Bitcoin price climbing above $150,000 is possible. He recently said that Bitcoin ETFs could witness inflows of more than $50 billion in its first year alone, adding that it could send the BTC price up to $168,000.