Ethereum saw excellent results in 2021 in terms of trading price, with many altcoins on the market. ETH briefly passed the $ 2,000 price range that was desired a month ago. However, as ETH could not maintain this position, its withdrawal was quick.
Although price increases are frequent, they have proven how altcoins, including Ethereum, are related to the price action of Bitcoin. However, given ETH’s position as the world’s leading altcoin and the second largest cryptocurrency, is the token ready to take back the $ 2K level once again?
Interestingly, there are quite a few bullish signs for ETH. In fact, past precedents have shown that even the data on the most rising chain can drop thanks to its correlation with Bitcoin and does not make much sense. Bitcoin’s bull rally had a positive effect on cryptocurrencies like ETH, and given the fact that the bull run is around the middle road mark, where exactly does that leave ETH in terms of price expectations?
A glance at the market data provided by CryptoQuant highlighted how ETH has dropped in stock market reserves since July 2020. This increased as the bull run rose, with stock market reserves dropping dramatically.
At the time of writing, ETH in exchange wallets hit a 2-year low, highlighting how most traders are sufficiently confident in the long-term prospects of the asset. This finding further reinforces the hodler sentiment towards ETH, making it slightly more immune to sudden sales.
Additionally, Ethereum has also seen steady development on its platform. While developer activity is not always responsible for price increases, the continuation of a healthy degree of development in its network is always an encouraging sign for its investors and traders and proves investors’ trust in altcoin.
In fact, the data provided by Santiment highlighted this and also pointed out that ETH is not the only altcoin to see increased developer activity.
There was also an increase in ETH staked in ETH 2.0. At the time of writing, approximately 3.5 Million ETH has been staked. Combined with the significant amount of ETH remaining in these cold wallets, it makes a solid case for a strong uptrend that is embodied for ETH. It can even be argued that this time around, altcoin might have everything it takes to see the trading price rise in value without the help of Bitcoin.