Data shows investors bought huge amounts of Ethereum this week, sparking joy for rally

Published on by Cryptoslate | Published on

Throughout the past month, Ethereum has outperformed most major cryptocurrencies to become one of the best-performing assets amidst a strong bitcoin upsurge.

Since Feb 1, within just 19 days, the Ethereum price has increased by 60 percent against the USD, from $185 to $280.What's pushing the Ethereum price up?

According to global markets analyst Alex Krüger, the average trading volume of Ethereum in the last seven days was four times higher than in the second half of 2019.

It critically shows that the upsurge of Ethereum is not necessarily completely manipulated as some whales like Joe007 pointed out.

There is a possibility that as the Ethereum price began to pick up in late January supported with spoof orders, which some consider being an attempt at manipulation, investors started to buy into the cryptocurrency.

The continuous increase in volume supplemented with various fundamental factors such as a clear rise in decentralized finance activity and accumulation in spot markets suggest that Ethereum is about to enter an extended uptrend.

Traders optimistic on ETH. Since the first week of January, Ethereum has front-run bitcoin and the rest of the cryptocurrency market.

In comparison to cryptocurrencies like bitcoin that are down by less than 50 percent from record highs, the Ethereum price fell by as much as 94 percent from its all-time high in 2019.

With Ethereum theoretically oversold at a macro level and the usage of applications on top of the blockchain network such as DeFi seeing an explosive surge, traders remain confident in the upward momentum of ETH. While the altcoin market depends on bitcoin to maintain its momentum, as long as BTC holds critical supports such as $10,000, technical analysts expect strength in the altcoin market.

Highly respected traders like Angelo who are speculated to trade with large amounts of bitcoin have also expressed their unwillingness to sell bitcoin and other crypto-assets until they hit new highs in the coming year.

x