The native Ethereum token, Ether (ETH), Could Outperform Bitcoin (BTC) And Hit New All-Time Highs, New Analysis Reveals.
In a Tweet on Wednesday, Ki Young Ju, general director of the CryptoQuant on-chain analysis, highlighted a “sell-side liquidity crisis” that could give ETH the edge over BTC.
Ether’s liquidity shortage “intensifies”
Given that Bitcoin is up more than 50% from its lows of $ 29,000, Altcoin prices have also started to rise, and Ether is no exception.
The largest altcoin has recovered $ 3,000, a level that, this week, is in the process of being retested as support.
Even though the focus is on Bitcoin regaining the $ 50,000 mark, Optimism on Ether’s price remains high after its successful rollout from the London hard fork earlier this month.
Thanks in part to supply shifts driven through the hard fork, a liquidity shortfall could serve to push the ETH / USD pair to new all-time highs before the BTC / USD pair succeeds in doing the same.
“ETH could hit its all-time high before long-term BTC”Ki summarized.
“The current price of ETH is closer to its all-time high compared to BTC. Higher demand, lower supply. The liquidity crisis on the selling side of ETH is still intensifying, while the BTC exchange reserve halted its downward trend in May. ”
In terms of numbers, exchanges’ Bitcoin reserves have been declining since May, only to rise again at the end of July. From a peak of 2.54 million on July 26, BTC reserves decreased to 2.44 million this week.
Conversely, ETH has seen a linear downward trend from the local high of 21.43 million reached at the end of May on exchanges. As of this week, the balance of the exchanges is around 19.25 million.
The battle of supply shocks
Ki isn’t the only one forecasting more rampant bullish momentum for Ether compared to Bitcoin.
As Cointelegraph reported, Bloomberg Intelligence has also come out in favor of ETH over BTC in a recent report, even forecasting a “flippening” of the largest cryptocurrency..
Meanwhile, data continues to show an ongoing supply shock for Bitcoin, something that has its own historical precedent for triggering BTC price rises.
“The shock ratio of the illiquid supply has been a good indicator in recent months”, He said analyst William Clemente III, citing the latest figures from the on-chain analytics resource Glassnode.
“The impulses in both directions have caused the price action to follow. As the metric continues to creep up, currently at previous levels of 58,000 BTC, expect another major boost. ”
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