ICrypto

Hotest Blockchain News in First Media Index

Ethereum (ETH) Supply Dynamics Tell An Interesting Story, Exchange Outflow Hits New Record

On Thursday, September 16, the world’s second-largest cryptocurrency Ethereum (ETH) rallied all the way to $3,700. Even today, ETH continues to hold $3500 levels strongly.

However, the Ethereum supply dynamics at the exchanges tell an interesting story. As per data from IntoTheBlock, the total number of ETH leaving the exchanges has hit a new record high. On Thursday, nearly $1.2 billion worth of ETH has left centralized exchanges (CEX).

Last time, when over $1 billion worth of ETH left CEX, the ETH price gained another 60% in just 30 days. If Ethereum were to replicate this move, we will see ETH moving past $5,500 levels very soon.

Courtesy: IntoTheBlock

Crypto analyst Lark Davis also has an interesting point to make relating to ETH supply. The crypto analyst wrote:

More than 10 million #ethereum has been bought between $3,426 and $3,536, This is a very significant supply wall for support, but also it is critical to note there is very little supply bought above this level to be dumped when the price starts running.

Courtesy: IntoTheBlock

Ethereum Outperforms Traditional Indices

So far, September has been a month of volatility both in the crypto and the traditional markets. Despite this, Ethereum (ETH) has managed to outperform the top-three U.S. Stock indices. Furthermore, with double-digit gains over the last month, ETH has also outperformed Bitcoin (BTC) which has been moving sideways for a while.

Besides, IntoTheBlock also considers Ethereum (ETH) as a risk-on bet by comparing it to Nasdaq. However, it maintains a negative correlation with the Volatility Index (VIX). The data provider noted:

Ethereum appears to be priced as a risk-on bet. $ETH has shown a high correlation to the Nasdaq, which tends to be linked with higher potential/risk investments It is also strongly negatively correlated to the $VIX pointing to the likelihood of a drop in volatile times. 

If the Ethereum price continues to hold past $3500, we can see further price action in this.

advertisement
? Share:
Disclaimer
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.
About Author
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.
FacebookTwitterLinkedIn

Subscribe to our newsletter for free

Share
 17.09.2021

Hotest Cryptocurrency News

End of content

No more pages to load

Next page