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Since January, the price of Ethereum has been trading with sudden highs and lows, leaving some traders waiting for markets to settle. After Ether dropped roughly 12% after its 20 February ATH of $2,042.93, the asset was trading at $1,790.94, at press time. However, over the last 24 hours, ETH endured an 8.4% drop and a 0.7% drop in the past week. 

Regardless of the price drop, popular Chinese journalist, Colin Wu, believes that certain metrics indicated a bullish trajectory for the price of Ethereum. 

ETH Reserve

In his tweet, Wu said that when ETH fell below $1,900, exchanges’ ETH reserve was only 20.63049 million, “a record low.” 

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Liquidations

Along with Ether’s rally to over the $2K mark, liquidations surged as well. For instance, on 20 February, when Ether was trading at $2004.71, more than $373 million of long positions were liquidated. 

Source: BYBT

In addition, Wu claimed that the “advancement” of ETH2.0 and “large hoarders” have caused a diversion of exchange reserves and added

The ETH market is facing a shortage of liquidity, which will drive prices to continue to rise.

Addresses

Moreover, IntoTheBlock’s Global In/Out of the Money analysis indicated that Ether had an average price of $1,690, with 2 million addresses having bought 8.9 million Ether at this support.

Source: Intotheblock


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