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Ethereum (ETH) Price Impacting Threshold Breached
Ethereum (ETH) is trading above $1,500 for 11 weeks, driven by momentum in the leading altcoin market. The crypto market value approaches $1 trillion, bringing money flow to both Bitcoin and altcoins.
Ethereum (ETH) has been trading above the $1,500 level for the past 11 weeks, driven by increasing momentum in the price of the leading altcoin. The crypto market's total value is approaching $1 trillion, bringing in a flow of money to both Bitcoin (BTC) and altcoins. The market, which has seen an influx of around $200 billion since the beginning of the year, has experienced strong rallies. As a result, the leading altcoin has gained over 30% in value since the beginning of the year. Meanwhile, altcoins with lower market values have seen more volatile movements.
On-chain data and token economy support: On January 16th, Ethereum tested $1,600. The strong price movement was supported by on-chain data and the token economy, as the number of investors holding between 100 and 10,000 ETH continued to increase. This number of "whale" investors reached its highest level since February 2021. Additionally, a significant threshold was also breached in the token economy that will impact the ETH price.
Deflationary movement: According to data provided by Ultrasound Money, the Ethereum supply decreased by 0.19% in the last 24 hours, indicating that the leading altcoin project is showing deflationary movement. In the past year, 622,000 ETH was minted while 732,000 ETH was burned, equating to a value of $1.3 billion. Therefore, it is expected that the burns will support positive price movements if demand for the market continues to increase.
Ethereum burn and price relation: The relationship between Ethereum burns and price is linked to the usage of the Ethereum network. As the leading altcoin burns through gas fees, the recent price momentum has supported burns. The introduction of EIP-1559 has led to a decrease in Ethereum's supply increase, further supporting the positive price movement. Crypto analyst Anvisaini believes that the burns will support the market value.
In conclusion, the current market conditions and on-chain data suggest that Ethereum's price will continue to rise. The deflationary movement and support from the token economy and burns are all positive indicators for the leading altcoin's future performance.