{"id":178928,"date":"2021-02-15T22:30:00","date_gmt":"2021-02-15T19:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-fundamentals-signal-2000-eth-price-is-closer-than-it-seems\/"},"modified":"2021-02-15T22:30:00","modified_gmt":"2021-02-15T19:30:00","slug":"ethereum-fundamentals-signal-2000-eth-price-is-closer-than-it-seems","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-fundamentals-signal-2000-eth-price-is-closer-than-it-seems\/","title":{"rendered":"# Ethereum fundamentals signal $2,000 ETH price is closer than it seems"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e088a2fa8d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e088a2fa8d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-fundamentals-signal-2000-eth-price-is-closer-than-it-seems\/#Total_value_locked_remains_in_an_uptrend\" >Total value locked remains in an uptrend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-fundamentals-signal-2000-eth-price-is-closer-than-it-seems\/#Exchange_withdrawals_indicate_long-term_holding\" >Exchange withdrawals indicate long-term holding<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum fundamentals signal $2,000 ETH price is closer than it seems <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>In the early hours of Feb. 15, Ether (ETH) price plunged to $1,660, followed by a 9% recovery within 10 hours. The move triggered $280 million in futures contracts liquidations, indicating excessive leverage from longs.<\/p>\n<p>Although the initial anxiety regarding CME&#8217;s ETH futures launch on Feb. 8 seems to have faded, sustained excessive transaction fees might have undermined investors&#8217; confidence. Nevertheless, the fundamentals behind Ethereum remain solid, indicating ETH price should promptly recover from eventual dips.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/59d2fc22-5cbf-47e3-b941-b5522704323a.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Ethereum <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n transaction fee, USD. Source: BitInfoCharts<\/em><\/figcaption><\/figure>\n<p>Even though the above metric might be interpreted positively, not every user can afford a $12 fee. A simple token swap on decentralized exchanges (DEX) can cost hundreds of dollars in gas fees, leaving small traders no choice but to abandon the network.<\/p>\n<p>Multiple proponents are testing sharding and layer-two solutions to circumvent this issue, including Skale and Optimistic Network. Eth2 will use sharding to split the blockchain into several parts and increase the number of transactions the network can process at once.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Total_value_locked_remains_in_an_uptrend\"><\/span>Total value locked remains in an uptrend<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The phenomenal growth of total value locked (TVL) in decentralized finance projects can&#8217;t be disregarded. The adjusted metric attempts to clean readings from ETH price increases, therefore providing more reliable data.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/3fef306f-6adf-433f-975f-13953a101514.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Adjusted total value locked, USD. Source: D<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>Radar<\/em><\/figcaption><\/figure>\n<p>As depicted above, the 34% increase over the past 30 days falls in line with ETH&#8217;s 38% gain in February. Regardless of the transaction fees, there is still value created by automated market-making pools and staking mechanisms.<\/p>\n<p>To better understand whether the recent crash reflects a potential local top and subsequent downtrend movement, one needs further data. Besides price action and technical analysis, investors should also gauge on-chain metrics such as network use. An excellent place to start is analyzing transactions and transfer value.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/fdcf20de-fffb-4ea7-b708-a34f8e024cdc.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/USD price (line) vs. transactions and transfers (area). Source: Coin Metrics<\/em><\/figcaption><\/figure>\n<p>Coin Metrics data shows the 14-day average transactions and transfers rallying above $9 billion in daily transactions, a 32% increase from the previous month. This significant increase in transaction and transfer value signals strength and suggests that Ether&#8217;s price is sustainable at the current levels.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exchange_withdrawals_indicate_long-term_holding\"><\/span>Exchange withdrawals indicate long-term holding<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although there is no consensus among analysts on the short-term price impact of exchange withdrawals, its effect is either neutral or bullish. The opposite movement, large continuous inflows, is the only bearish scenario, as it indicates holders&#8217; willingness to sell.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/77e32281-5b7e-40ce-8fe8-b28079e9e745.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/USD price (black) vs. exchanges ETH reserve (red). Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/\"><em>CryptoQuant<\/em><\/a><\/figcaption><\/figure>\n<p>From Jan. 1 to Feb. 15, roughly 600,000 ETH was withdrawn from exchanges. Regardless of if whales are transferring to cold wallets or putting Ether into the DeFi ecosystem, those coins are less likely to be sold in the short term.<\/p>\n<p>Considering this movement happened while Ethereum made a $1,870 all-time high, the indicator indicates holders&#8217; confidence. <\/p>\n<p>To conclude, based on both on-chain metrics and trading perspective, there are encouraging signals that $2,000 is within reach and that dips are being bought up aggressively.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>autho<\/em><em>r<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-fundamentals-signal-2-000-eth-price-is-closer-than-it-seems\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Ethereum fundamentals signal $2,000 ETH price is closer than it seems &#8221; In the early hours of Feb. 15, Ether (ETH) price plunged to $1,660, followed by a 9% recovery within 10 hours. The move triggered $280 million in futures contracts liquidations, indicating excessive leverage from longs. Although the initial anxiety regarding CME&#8217;s ETH&#8230;<\/p>\n","protected":false},"author":1,"featured_media":178929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvNDFiNzlhM2ItMzQ4ZS00ODUwLTk2YTMtZmI4OWE0OTdmNmFlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[82402,74891,75326,74939,73785],"class_list":["post-178928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-ether-price","tag-ethereum","tag-ethereum-2-0","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/178928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=178928"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/178928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/178929"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=178928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=178928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=178928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}