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.
Related: Ethereum (ETH) breaks above $4K in the wake of Bitcoin's record rally.
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.
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.
Related: Ethereum addresses holding more than 1 Ether hits record high as ETH holds $3.8K
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.
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.
Related: Can ETH hit $35,000? This Standard Chartered Ethereum investor guide says yea
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.
Ethereum has shown promising signs of resilience and future growth, with several bullish cues lined…
Ex-Digitex CEO Adam Todd Admits to Regulatory Failures NAIROBI (Coinchapter.com) - Ex-Digitex CEO Adam Todd…
Frustrated Gary Gensler Says "outsized ratio"of Questions Concern Crypto NAIROBI (Coinchapter.com) - Frustrated SEC Chair…
Polkadot's Major Upgrade Ahead NAIROBI (Coinchapter.com) - Polkadot, saw significant growth in early 2024, priming…
Shiba Inu New Users Numbers Surge According to data from Shibariumscan, the Shiba Inu blockchain…
In a candid disclosure, Binance CEO Richard Teng shattered weeks of quiet by detailing the…