Ethereum has been trading at unexpected highs and lows since January, leaving some traders eager to settle markets. After Ether dropped about 12% of its $2,042,93 ATH on 20 February, the commodity traded at $1,790,94 at press time. However, over the last 24 hours, ETH has seen an 8.4% drop and a 0.7% drop in the last week.
Notwithstanding the price downturn, influential Chinese journalist Colin Wu argues that certain metrics have indicated a bullish trend for the price of Ethereum.
In his tweet, Wu said that when ETH dropped below $1,900, the ETH reserve of exchanges was just 20,63049 million, “a record low.”
Along with Ether’s rally over the $2K mark, liquidations have erupted. For example, on 20 February, when Ether was trading at $2004.71, more than $373 million of long positions had been liquidated.
In addition, Wu stated that the “advancement” of ETH2.0 and the “large hoarders” had led to a diversion of exchange reserves and added:
“The ETH market is facing a shortage of liquidity, which will drive prices to continue to rise.”
In addition, the Global In/Out of Money study of IntoTheBlock showed that Ether had an average price of $1,690 and that 2 million addresses had purchased 8,9 million Ether for this support.
294 Interactions, 14 today