The Ethereum price surpassed $3,000 on February 20, surpassing Bitcoin’s growth of 22%. This week, ETH 2.0 deposit trends suggest that the gap may widen further.
The media frenzy around the Bitcoin ETF approval was seen. BTC Price outperform ETH In the early days, the market was on a rally. The market has reversed its trend since the beginning February.
Bulls could take advantage of the declining market supply and the increasing ETH 2.0 staking deposit to push the price above $4,000 as investors place long-term wagers.
Ethereum surpasses BTC, despite record-breaking inflows of ETFs
Bitcoin has been dominating the media in recent weeks, and with good reason. Since the U.S. Securities Exchange Commission’s (SEC) approval of the Bitcoin ETFs, on January 11, BTC received unprecedented interest from institutions.
After only six weeks, on February 19, the 10 newly-launched ETFs The ETF had purchased over 654,000 BTC worth over $36 billion. Despite record-breaking BTC ETF influxes, ETH’s price performance has managed a jump over BTC.
The price chart for BTC shows a 24.2% increase in February. Prices rose from $41,864 up to a peak of $52,985.
The price of ETH has also shown a more impressive performance, rising 33.7% from $2,241 up to $3,000 on February 20, for the first time since April. 26, 2022.
Ethereum: Investors make long-term investments
Dencun upgradeMedia praise for Ethereum is not lacking.
On-chain data shows that long-term investors who staked coins in anticipation of an imminent ETH ETF approval were crucial to ETH’s explosive price movement, which eclipsed BTC by February.
Investors pulled coins valued at over $1.5 Billion in the last week, as they deposited 504,799 Etherum into ETH 2.0 Staking Contracts on February 13 and Feb. 20,
According to official data taken from the Beacon blockchain, the total stake deposits on the Proof of Stake network (PoS), rose to 30,064,242 Ethereum.
In a bull-market, an increase in the number of staking deposits can be a positive sign for any PoS networks. Increased staking deposits improve network security and stability in the face of increased network activity. They also signal that many large ETH holders are willing to stay on board despite rising prices.
A $1.5billion increase in ETH staking at a time when prices are nearing a 2-year high shows a surge in investor commitment and confidence.
If this trend continues, the fall-off in supply in response to a booming market could lead to ETH’s price overtaking BTC in weeks ahead. This is especially true given that the Bitcoin network does not offer a similar large-scale staking incentive.
Forecast: Will Ethereum’s price rise to $3,500 by 2020?
ETH appears to be primed for a further rise in price towards $3,500 over the next few weeks.
Historical accumulation trends indicate that ETH is likely to face a stiff opposition at $3,200.
Global in/out of money (GIOM), a data set from IntoTheBlock, groups all existing investors of ETH by their entry price. The GIOM shows 12,9 million holders acquired 4,74 million ETH for $3,212.
This is because this is the biggest group of holders who bought ETH over the current price. Therefore, a breakout above $3.200 could open the way to a bigger upswing, towards the $3.500 mark.
Bears can still invalidate the prediction if it falls below $2,500. Even in this scenario the 5.2million addresses that purchased 4.1million ETH at $2,548 minimum could create a significant buy wall.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: crypto.news
