• Ethereum recently passed the $1,700 mark for the first time since September 2020.
• According to market intelligence platform Santiment, there may be a local top forming due to a gap between major ETH profit taking and the availability of ETH supply on exchanges.
• Analysts suggest that ETH might remain stable at around $1,640 in the coming days.
Ethereum Breaks Above $1,700
Ethereum (ETH) briefly surpassed the $1,700 mark on February 2nd after soaring more than $500 since the start of 2021. This marks the highest price level Ethereum has achieved since September 2020 and is seen as bullish activity by many crypto investors and traders.
Supply Gap Suggests Local Top May Be In
The market intelligence platform Santiment identified several key points suggesting a potential local top following Ethereum’s rally. According to their chart overlaid with 3 key metrics: Price (ETH), Ratio of Daily On-Chain Volume in Profit/Loss (ETH), and Supply on Exchanges (as % of Total Supply) (ETH), there is a large gap forming between major ETH profit taking and the availability of ETH supply on exchanges. Major ETH profit taking hit its highest level since February 2021 while supply on exchanges fell to below 11.25%, its lowest level since June 2018 – suggesting a local top may be in play soon.
Analysts Predict Stability Around $1,640
Analysts believe that this current bullish activity may be short-lived and expect Ethereum will remain stable around $1,640 in the next few days ahead. Despite this prediction however, investors should still exercise caution when trading cryptocurrencies as it is known for being unpredictable in nature and volatile markets can lead to both profits or losses depending on individual investor’s risk appetite or strategy employed when buying or selling digital assets like Ethereum.
What Is Santiment?
Santiment is an analytics platform designed to provide real-time insights into cryptocurrency markets through data analysis by tracking various types of data such as prices, trading volume, sentiment analysis etc.. The company also provides users with tools like social media sentiment analysis which allows them to track how different coins are discussed across various social media platforms such as Twitter or Reddit – helping them identify potential investment opportunities before they become mainstream news headlines or get priced into certain coins‘ value too heavily.
Conclusion
Ethereum recently broke above its previous all-time high price from 2018 with investors hoping for further gains in 2021. While some analysts predict stability around the current price levels in the coming days ahead others point out that gaps between major profit taking and available supply suggest a local top may be in play soon – so investors should exercise caution when dealing with cryptocurrencies given their volatile nature and unpredictable markets which could lead to either profits or losses depending on individual strategies employed when buying/selling digital assets like Ethereum .
