On Thursday, September 16, the world’s second-largest cryptocurrency Ethereum (ETH) rallied all the way to $3,700. Even today, ETH continues to hold $3500 levels strongly.
However, the Ethereum supply dynamics at the exchanges tell an interesting story. As per data from IntoTheBlock, the total number of ETH leaving the exchanges has hit a new record high. On Thursday, nearly $1.2 billion worth of ETH has left centralized exchanges (CEX).
Last time, when over $1 billion worth of ETH left CEX, the ETH price gained another 60% in just 30 days. If Ethereum were to replicate this move, we will see ETH moving past $5,500 levels very soon.
Crypto analyst Lark Davis also has an interesting point to make relating to ETH supply. The crypto analyst wrote:
More than 10 million #ethereum has been bought between $3,426 and $3,536, This is a very significant supply wall for support, but also it is critical to note there is very little supply bought above this level to be dumped when the price starts running.
Ethereum Outperforms Traditional Indices
So far, September has been a month of volatility both in the crypto and the traditional markets. Despite this, Ethereum (ETH) has managed to outperform the top-three U.S. Stock indices. Furthermore, with double-digit gains over the last month, ETH has also outperformed Bitcoin (BTC) which has been moving sideways for a while.
Besides, IntoTheBlock also considers Ethereum (ETH) as a risk-on bet by comparing it to Nasdaq. However, it maintains a negative correlation with the Volatility Index (VIX). The data provider noted:
Ethereum appears to be priced as a risk-on bet. $ETH has shown a high correlation to the Nasdaq, which tends to be linked with higher potential/risk investments It is also strongly negatively correlated to the $VIX pointing to the likelihood of a drop in volatile times.
If the Ethereum price continues to hold past $3500, we can see further price action in this.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.