On February 17th, the market turned green with Ethereum surging more than 10 percent. Since that day, the crypto market has been registering the greens. Starting from $120 on February 17th, the price reached $149, the highest in the last six days which is a hike of 24 percent.
Eth price 5-days chart, Source: TradingView
The same day i.e. February 17th, the Ethereum supply has been the lowest ever figure in history. With just about 12,989 Ether released, the numbers never saw below the 13k mark in the Ethereum history before, as per the data provided by Ether scan.
“Lowest Daily Block Rewards of 12,989.34375 ETH was recorded on Sunday, February 17, 2019,” as stated on Etherscan.
Ether Supply Growth Chart, Source: Ether scan
Recently, Mati Greenspan, the senior analyst at eToro went on Boxlive.TV where he talked about Ethereum being the one that started this rally. With the Constantinople upgrade being delayed, the supply of new Ethereum has been declining in the last week or so.
“This is the chart that kind of started this whole rally. New Ether coming online is less than 13,000 for the first time in history. Usually, it’s between 20k to 30k a day but has been declining lately due to the delay of Constantinople Hard Fork,” said Greenspan.
The factor in play here is the demand and supply economics. If demand is more than supply, the prices rise and if the supply is more than the demand for a particular product, the prices fall. In the case of Ethereum, it could be said that while the supply dropped, the demand remained stable and as a result price rose upwards.
However, with the new Ethereum supply tapering off, it has its downsides in the way that the hash rate has also taken a hit at140 TH/s which was last registered in mid-December 2017. Though on February 6, it has been even lower at 139 TH/s.
Ethereum Hash Rate, Source: Etherscan
At the time of writing, Ethereum has been trading at $148.24 with 24-hours gains of 2.03 percent, as per the data provided by Coinmarketcap. In the BTC market as well, it is up by 1.35 percent while managing the daily trading volume of $3.6 billion. With Ethereum Constantinople hard fork coming on February 28, traders are feeling bullish as ETH/USD longs are moving upwards while ETH/USD shorts continue to drop to new lows.