- The total balance of Ethereum on crypto exchanges has reached an all-time high. According to some analysts, this trend could point to an imminent correction of the ETH price.
- Meanwhile, the balance of Bitcoin on the exchanges has fallen by 300,000 BTC since the annual low in March.
Earlier this year Ethereum was in a strong uptrend that propelled it to its annual high of $285. However, like the entire crypto market, Ethereum was hit by the unexpected appearance of the COVID-19 pandemic. Due to this, Ethereum fell sharply and recorded losses of around 50% in less than 24 hours, causing the cryptocurrency to fall below $100.
Since then, ETH has been recovering and is trying to reach the annual high. However, some analysts are skeptical about ETH’s performance and predict an imminent crash. At the time of publication, ETH is priced at $201 with slight gains of 0.79% in the last 24 hours and a gain of 17.12% over the past month.
Quantity of Bitcoin on exchanges in opposite trend to Ethereum
According to some analysts, there has been an opposite trend for Ethereum and Bitcoin since the aforementioned crash in March. The amount of Ether (ETH) that has remained on crypto exchanges has reached an all-time high. In contrast, according to analyst Ceteris Paribus, the balance of Bitcoin on the exchanges has fallen by 300,000 BTC (about $3 billion) since “Black Thursday”. This puts BTC levels at their lowest level in a year.
Furthermore, Ceteris Paribus is pointing out that the number of ETH on the exchanges amounts to 132,000 ETH (about 26 million). This indicates that while BTC investors have decided to move their investments out of the exchanges, ETH investors have kept them there and may be more willing to sell ETH.
In addition, analyst Credible Crypto has found indications for a bearish trend on the Ethereum chart. According to him, ETH should have stayed above the $199 mark until mid-May, but failed to do so, the analyst said:
Well the level didn’t hold here at the close. I was in a long and have cut it for -.25R. Could this be a fakeout? Possibly, but we can always re-enter if some key levels are reclaimed. Until then I will stay out in case a larger correction is coming.
This statement is supported by the analyst CryptoCapo. Looking at the Ethereum chart, the analyst found that the cryptocurrency is in a textbook “correction pattern”. The analyst also explained that it is possible that ETH will reach $250 before it falls.
$ETH – EW count
Main target: $40-45 pic.twitter.com/OUNp8m0vA1
— il Capo Of Crypto (@CryptoCapo_) May 3, 2020
On the other hand, analyst and partner of MetaCartel Ventures, Adam Cochran indicated that the rewards project launched by Reddit could attract fresh capital to Ethereum. Therefore, the downward trend predicted by other analysts could be wrong, Cochran said:
Today, Reddit introduced about 20M new users to cryptocurrency in a matter of seconds. That’s how many users visit Reddit’s /r/Cryptocurrency and /r/FortniteBR on any given month; and given that the number of semi-active wallets on Ethereum was only around 1.2M wallets, this is a huge deal.
Cochran also made the case that the ETH price will benefit from the launch of Ethereum 2.0. However, the upgrade is still in its testnet stage. The core developers of the Ethereum have confirmed that progress is still needed to say for sure when Ethereum 2.0 will be released.