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Ethereum’s native token, Ether (ETH), could beat Bitcoin (BTC) to new all-time highs, new analysis reveals.
In one Tweeter Ki Young Ju, CEO of chain analysis service CryptoQuant, on Wednesday highlighted a “seller-side liquidity crisis” that could give ETH the edge over BTC again.
The lack of liquidity in ether “intensifies”
With Bitcoin up more than 50% from its lows of $ 29,000, altcoins have also started to wake up, with Ether being no exception.
The biggest altcoin recovered $ 3,000, a level which this week is now being retested as support.
Despite the attention paid to Bitcoin’s $ 50,000 clawback, optimism over Ether remains high following the successful deployment of its hard fork in London earlier this month.
Thanks in part to the pushed supply changes via the hard fork, a lack of liquidity could ultimately be used to push ETH / USD to new all-time highs before BTC / USD manages to do the same.
“$ ETH could hit all-time high before $ BTC in the long run,” Ki summed up.
“The current $ ETH price is closer to the ATH compared to the $ BTC. Higher demand, lower supply. The sell-side liquidity crisis of $ ETH intensifies further, while the $ BTC foreign exchange reserve stopped its downward trend in May. ”
In terms of numbers, Bitcoin’s foreign exchange reserves have declined since May, only to return at the end of July. From a peak of 2.54 million on July 26, BTC reserves then declined to 2.44 million this week.
In contrast, ETH has seen a mostly linear downtrend from the end-of-May local high of 21.43 million held on the stock exchange. As of this week, the foreign exchange balance is around 19.25 million.
Battle of supply shocks
Ki isn’t the only one predicting a more endemic bullish load for Ether versus Bitcoin.
Related: Analysts Say This Key Metric Hints An Altcoin Season Is At Hand
As Cointelegraph reported, Bloomberg Intelligence also favored ETH over BTC in a recent report, even predicting a “turnaround” for the largest cryptocurrency.
Meanwhile, the data continues to show an ongoing supply shock for Bitcoin as well – something that has its own historical precedent to trigger BTC price hikes.
“The illiquid supply shock ratio has been a good leading indicator in recent months,” analyst William Clemente III commented on the latest digits from Glassnode, another on-chain analytics resource.
“The two-way pulses resulted in the following price action. As the metric continues to slowly progress upwards, currently at previous levels. 58K BTC, on the lookout for another major boost.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.
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