New Investment Inflow Helps Ethereum (ETH) Surge Past $1400 Despite Rising Gas Fee

By Bhushan Akolkar
February 2, 2021 Updated February 2, 2021
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Top 10 Ethereum Whales Now Hold 24% Of All ETH, Price Jumps Above $3500

The world’s second-largest cryptocurrency Ethereum (ETH) has made a bold move once again surging past $1400 levels earlier today. Earlier today, Ethereum (ETH) surged past $1400 but failed to hold the momentum to hit an all-time high. At press time, ETH has cooled down a bit but is still trading 4.3% higher at $1375.

For a while, Ethereum has been consolidating just like Bitcoin did before breaking past its previous ATH of $20,000. Well, technically, the charts show that ETH is poised for a Bitcoin-like breakout in the near time. On-chain data provider Santiment notes that there’s a flood of new investors recently coming to Ethereum that is allowing the momentum to continue.

On the other hand data from CryptoQuant suggests that a large number of ETH has been moved off the exchanges in recent times. the total number of ETH held on exchanges has recently hit a historic low. In the last 30 days, 3.75M ETH worth $4.97 billion has moved off the exchanges. Possibly, these ETH coins have gone to Ethereum 2.0 staking, cold storage or DEXs.

Courtesy: CryptoQuant

Another report from Glassnode shows that the total value held in Ethereum 2.0 deposit contracts hit a massive $4.0 billion.

A Small ‘Yellow Flag’ for Ethereum

On-chain data provider Santiment notes that the ETH gas fee has been rising and has hit a 3-week high of $11.46. This suggests a possible cooldown period in usage until the fee returns to normal.

The rise in ETH gas fee would not only from ETH investors buying more but also the surge in the DeFi activity in recent times. The Ethereum price has already moved 90% up year-to-date but analysts think that we might be just getting started at this point. This is because the launch of CME Ether Futures in just a week’s time can bring a flood of institutional investments to the cryptocurrency.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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