Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has significantly underperformed Bitcoin (BTC) so far this year, but new analysis suggests ETH will catch up by surpassing all-time highs. is likely to soar.
According to a chart shared by popular crypto analyst Ali Martinez, Ethereum managed to hold the $2,400 support level and “may now target the upward boundary of the channel near $6,000.” .
The chart, which Martinez shared with his more than 76,000 followers on microblogging platform It shows that it is around $6000.
As reported by CryptoGlobe, the amount of ETH held on crypto exchanges recently rose to around $750 million following massive withdrawals of the second-largest cryptocurrency by market capitalization from these platforms. It also fell sharply.
A decrease in the supply of Ethereum on crypto exchanges is often interpreted as a bullish sign, as stable or increasing demand can lead to price increases. Funds are often moved off exchanges to allow holders to store their funds long-term.
Ethereum holders can also move funds from exchanges and stake funds on the network in order to earn yield on their holdings through the network’s proof-of-stake consensus mechanism.
ETH has significantly underperformed BTC, with the flagship cryptocurrency up 109% over the past 12 months, compared to Ethereum’s 47.5% rise over the same period, according to data from CryptoCompare.
Source: CryptoCompare
Featured image via Unsplash.
