Ethereum On Crypto Exchanges Hit Multi-Year Low Figure
With Ethereum serving as the platform for significant projects in the decentralized finance sector, the second digital asset has been performing woefully in the last few weeks.
Even though the coin’s performance is good in the crypto market, compared to leading digital asset, Bitcoin, Ethereum has dropped what would be described as a shabby performance in recent weeks. To buttress these underperformance claims, one would notice that while Ethereum is currently struggling to touch its 2020 ATH, Bitcoin has yet again smashed its recent resistance and surged to a level that was last seen in 2017. While analysts have made a case of Ethereum being bullish, most of them are looking at it from its on-chain activities angle.
Experts say selling pressure in the Ethereum market is high
With the movement to Ethereum 2.0 already done, users have been participating as they have started sending coins to the staking contract in droves. With the awakening of the DeFi sector, the network has seen a high volume of traffic in recent weeks.
To back their claims of the bullish on-chain activity of Ethereum, analysts often point to the number of Ethereum that is currently being held by users on exchanges across the globe. Presently, the number of Ethereum on exchanges has hit another low level, which was last seen in 2018.
This latest trend points to one thing; the vast selling pressure currently presents in the Ethereum market in the last few weeks. Ethereum presently trades at $473 after a small price surge of 3%. Notably, the digital asset has been trading around this price region for the last few weeks.
Even though it has witnessed a massive turnaround, for the time being, the fact remains that the coin is still trading under its 2020 high of $500. It is to be noted that the 2020 ATH price of the token was set around the time that the DeFi sector gained a massive media presence.
Experts think Ethereum is primed to make a bullish run
Another argument is that the coin has experienced a rapid rise to trade well above its yearly lows of $300, which was set after the DeFi hype subsided with the other markets also experiencing bearish runs. Presently, the coin’s price has remained in a position despite the release of the Ethereum 2.0 network, which was regarded as the bullish catalyst that the coin needed.
The on-chain activity of the coin is currently going to help the bulls push the coin higher. Analysis firm, Santiment spoke about the number of Ethereum on crypto exchanges when the firm mentioned that only 13.3% of the total Ethereum in supply are on exchanges.
Looking at the trend mentioned above and Bitcoins lead to bring other altcoins along with it on its rise, one can assume that Ethereum is primed for a bullish run. Another reason why the bulls will be eyeing the coin in the coming weeks is the awakening of the DeFi sector, which at a point pushed the price to reach its 2020 all-time high.