Ethereum’s price shot up to an all-time high of $1,651.27 on February 3 because of a surge in customer demand for crypto coins despite reports of an ETH supply shortage. This comes after the first month of 2021 where ETH price was at $1.4K.
Glassnode, a crypto market data and intelligence platform released a graphed analysis in the last week of January. ETH is withdrawing from centralized exchanges, according to speculation by CoinDesk. This is based on the graphed data provided by Glassnode and talks about the possible cause of the expected supply shortage, but the prices of ETH say otherwise.
The price of ETH comes close to $1.7K compared to its $1.4K price back in January. This means it accomplished a higher rise in value compared to that of Bitcoin’s slow climb in the first month of the year.
Financial investment company Invest Diva’s CEO Kiana Danial spoke with Forbes and said, ‘ETH/USD finally broke above the key psychological level of $1,400 and has been able to maintain its bullish momentum in the past 2 days. However, due to its volatile nature and the fact that institutional investors may start taking profit soon, we could see pullbacks again.’
Various companies are also taking advantage of the situation by investing more in Ethereum. Cryptocurrency data analysis and trade execution firm Skew reported that Grayscale Investments increased their ETH stock and added 24,800 ETH to their firm. Other notable companies that invested in Ethereum in the past include the ING Banking Group and Ubisoft.
Experts like COO and co-founder of crypto company Mudrex Edul Patel shared how Ether’s price will fare in the coming days.
‘Ether has grown rapidly in the last few days and is very likely to hit $2,000. Before that, we will see it struggle a bit with $1,750 as well.’
In response to the growing demand for crypto, the CEO of Hong Kong crypto investment firm Kenetic Jehan Chu spoke with CoinDesk.
‘The ETH slingshot is only now being drawn back, and we can expect a powerful upward move in the first half of 2021.’
ETH is the second most popular cryptocurrency in the world after Bitcoin since its launch in 2015. Aside from having its own cryptocurrency, Ethereum is also a programming language that can create smart contracts and distributed applications.