Ethereum Battles Resistance as Exchange Inflow Volume Drops
Ethereum, the world’s second-largest cryptocurrency by market capitalization is seeing consistent resistance in its bid to reclaim the $2,000 psychological price level.
According to CoinMarketCap, Ethereum joins Bitcoin in initiating a slight dip in the crypto market. Ether is currently trading at $1,814.79, down 1.03% in the past 24 hours after parring off some of its losses in the early hours of the day.
The resistant battle of Ethereum is however not backed by some on-chain metrics. As outlined by Glassnode, Ethereum Exchange Inflow Volume (7d MA) just reached a 1-month low of 15,477.056 ETH, showing the lack of momentum in a push by market bears to liquidate their Ethereum holdings. While the metrics are silent on where the bulk of the Ether in circulation is going, Decentralized Finance (DeFi) data provider, DeFi Pulse reveals that the total ETH locked in smart contracts surged from 8.745 million on March 17, up to 9.226 million today March 19th.
With the bulk of Ethereum going into smart contracts, a new position has been ascertained, noting that Ethereum’s high gas fee woes are not a factor in preventing holders from taking advantage of the other benefits the network offers.
Meitu scoops up more Ethereum than BTC
The Ethereum market is also not showing off the impact of Meitu scooping up more ETH than Bitcoin in its recent purchase. Blockchain.news reported earlier that the Chinese software firm allocated $50 million into crypto, with the bulk of the funds invested in Ethereum.
The clamour for the positive future prospects of Ethereum is growing by the day as the crypto space anticipates the implementation of the EIP 1559 upgrade, as well as the long haul to the full migration to Ethereum 2.0 - the proposed Proof-of-Stake model that will help secure the system more and provide the needed scalability.
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Ethereum to Overtake Bitcoin as the More Attractive Asset with ETH 2.0 and EIP 1559 Rollout - Messari