Why Ethereum is unlikely to drop below $1,500 anytime soon
Ethereum reserve in all Crypto exchanges hit a two-year low.
Investors remain relatively bullish on Ethereum, as lately, they have been eager to acquire Ether at above the $1,500 mark.
Ethereum has had sustained outflows over the last 3 weeks and now we have more than 3.5 million Ethereum staked in 2.0. The exchange reserve on Ethereum is declining constantly. This reflects accumulation and confidence in the market.
Ethereum reserve in all exchanges hit the two-year low.
$ETH reserve in all exchanges hit the two-year low.
— CryptoQuant.com (@cryptoquant_com) March 19, 2021
However, at the time of drafting this report, a significant amount of profit taking was observed, as the utility crypto traded at $1,776.17 with a daily trading volume of $25.4 billion and is down 3.38% for the day.
It’s also critical to note that miners remain more attracted to Ethereum as they earn almost four times more than those in the Bitcoin network. Ethereum’s fees which amount to the total dollar value spent on the Ethereum blockchain — are at record levels, with over $8 billion in annualized fees.
While Bitcoin, the world’s most popular Crypto asset, annualized fees are currently around $2.3 billion. This contrast highlights Ether’s growing utility and the reason why it is often referred to as digital fuel.
- The odds have been on the utility crypto’s side since its recent upgrade, Ethereum 2.0 (a network that promises better functionality and experience to the Ethereum network).
- Unique features of the notable upgrades include a shift from Proof of Stake (PoS) to Proof of work, a new blockchain referred to as the beacon chain that provides better scalability. All of this and more is expected to be phased in through a carefully planned roadmap.
Through the implementation of efficiency, enhancements, scalability, and speed, the Ethereum network becomes better without compromising its decentralization and security.