Rapid Ethereum Accumulation Takes Place as Price Retakes $400
- Ethereum has undergone a strong rally to $406, up 8% in the past 24 hours.
- ETH is slated to move higher as there seems to be a trend of accumulation taking place amongst Ethereum investors.
- Per new data, 250,000 ETH has been siphoned off of Binance in the past 24 hours, which is 10% of the exchange’s holdings.
Strong Ethereum Accumulation Taking Place: Data
Ethereum has undergone a strong rally over the last day on the back of news regarding ETH2 and Serenity. ETH currently trades for $406, up around 8% in the past 24 hours alone. The coin is now outperforming Bitcoin, which has also undergone a surge in the past day.
ETH is slated to move higher as there seems to be a trend of accumulation taking place amongst Ethereum investors.
A crypto-asset analyst shared the data seen below amid ETH’s move higher, noting that accumulation is taking place as per on-chain trends. Per the data, 250,000 ETH has been siphoned off of Binance in the past 24 hours, which is 10% of the exchange’s holdings.
Some believe that this is a result of the ETH2 deposit contract being released. This may result in an influx of Ethereum accumulation as investors look to accumulate ETH to earn yields through this blockchain upgrade.
ETH2 introduces a Proof of Stake consensus mechanism into the Ethereum system. It rewards those that stake their coins, as long as they properly validate blocks in the chain.
“258k $ETH moved off Binance in the last 24 hours. Almost 10% of what Binance had in it’s wallets. Let’s make it another 10% Sell side liquidity crisis coming in a few months. Where will you get Eth when it’s all locked in smart contracts and DeFi? Are you forward thinking?”
Data of the ETH held by top crypto-asset exchanges shared by Pentoshi, head of TA at Blockfyre
Buoyed by Adoption
ETH is being further buoyed by institutional adoption.
For one, Australia’s reserve bank recently announced it will be using Ethereum technology for its CBDC.
“The Reserve Bank today announced that it is partnering with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT)… The project will involve the development of a proof-of-concept (POC) for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment of a tokenised syndicated loan on an Ethereum-based DLT platform.”
CFTC Chairman Heath Tarbert recently said that he supports Ethereum, calling the blockchain innovative and exciting.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Rapid Ethereum Accumulation Takes Place as Price Retakes $400