Los Angeles (CoinChapter) – The price of Ethereum continues to hold above $2,000 despite the ETH balance on crypto exchanges recently hitting a 20-month low. According to analytics company Glassnode.
Glassnode shared that investors have been moving their Ethereum holdings from exchanges into a cold wallet. As a result, the outflow of ETH has hit a one-month high of 20,422.908, which is the equivalent of $41,595,132.
To no surprise, the amount of ETH transactions has also surged to a one-month high of 52,239.506.
On the other hand, the Ethereum balance on crypto exchanges has plummeted to a 20-month low of 14,605,497.262. This equates to a massive $29,735,185,820 in fiat.
According to Glassnode, the Ethereum mining difficulty also reached a new all-time high of 6,644,231,891,387,970. The previous record was 6,616,566,584,050,540 set on the previous day.
The Ethereum price surged past $2,000 for the first time last week in conjunction with the Bitcoin price reaching a milestone of its own at above $60,000. ETH traded as high as $2,152 before a correction that pared some of those gains. At press time, the second-largest cryptocurrency was trading at $2,074.
One of the biggest factors that contributed to the Ethereum price record was billionaire Mark Cuban. Who revealed that he allocated 30% of his portfolio into ETH.
Cuban, a former crypto critic, additionally has allocated 60% of his portfolio into Bitcoin. The remaining 10% of his portfolio consists of altcoins such as Dogecoin.
Institutional interest in Bitcoin and Ethereum continues to rise thanks to companies like Grayscale. It now holds a reported 3.17 million Ethereum, which at the current rate translates to an impressive $6,754,580,000.
Ethereum 2.0 Beacon Chain smart contract also helping ETH price maintain $2,000
Another reason why the ETH price has been able to maintain $2,000 is the Ethereum 2.0 Beacon Chain smart contract.
A growing amount of users are adding ETH into it, which is further reducing the active supply against a potentially rising demand.