By Shelly Melancon (Switzerland)
Cryptocurrencies have recently suffered a dip which has seen the prices fall drastically with Bitcoin falling to as low as $30,000. This dip may or may not be part of the reasons why the second largest crypto has had addresses with 100 or more Eth reduced recently, more than it has ever gone in 3 years according to data from Glassnode. The number of addresses with100 eth now stands just over 42,000.
What Does this Indicate?
According to experts, often when dips like this occur, it indicates that the owners of such assets have sold it off for some profit. The value of ETH recently dropped to as low as $1700 and this goes hand in hand with sales by investors.
However, it is believed that this sold Ethereum are being bought by investors seeking to make more profit from the asset as so many believe the price will skyrocket in the long run. This could be seen by the notable increase in the Grayscale Ethereum Trust premium which is now 11%. Most of the last 3 months saw the premium carrying a negative number.
This increase hints at increased interest in ETH and stands to boost the price of the digital currency.
Ethereum has Since Gone up
Despite going as low as $1700 just a few days ago, the second largest crypto in the world has since gone over the $2000 mark and is expected to hit $3000 as early as June. It has since gone as high as $2750 which is a very remarkable growth under 2 days.
According to data by TradingView, ETH might go as high as $3200 in June which may increase the pressure to sell to make profits as is normal in the world of crypto and the fears the China ban on the mining of BTC and trading has caused.
Investors who have purchased crypto at $1700 stand to make over 70% profits should ETH reach its projected price of $3200 come June. It is also important to note that just recently; ETH went as high as $4000 and could go as high as $19,000 according to analyst Lark Davis.
What to do going Forward
Ethereum seems to be a very stable crypto in comparison to others especially BTC. The prices of ETH seem unaffected by celebrity declarations and interferences and as such, it is highly recommended by investors for investors.
Furthermore, recent reports by Glassnode also indicates that investors have made ETH the crypto of choice as there has been heavy investment on the currency in recent times. These reports claim that long term investors have been using cold wallets to save their crypto which allows them to continuously earn yields for a long time. These data also suggests that many investors have been converting their BTC to ETH.
These data also states that the demand for ETH has increased drastically and that 30% of ETH supply has been reduced in the last 9 months. Ethereum truly is aiming for BTC’s crown.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.