3 reasons why the price of Ethereum (ETH) is strengthening against Bitcoin
The price of Ether (ETH) is holding on to the $2,500 handle even though data shows that futures liquidity is increasing.
January 16 saw $15.03 million worth of ETH shorts liquidated along with $5.3 million worth of long liquidations, according to data from tracking source Coingels.
This rose from the ETH/USD pair to $2,614, crossing the resistance at $2,500.
Additional data from on-chain analytics firm Glassnode dominated short- and long-term liquidity on Jan. 16.
A 10xResearch report shows that Ether's open demand share has been increasing since the beginning of the year.
According to the report:
“The share of open interest in futures continued for BTC (41.6% on January 1. Vs. 41.1% now), while the share of open interest for ETH increased from 21.8% to 26.5%.”
Investors expect ETH/BTC to continue to appreciate.
10xResearch also highlighted that the Bitcoin (BTC) dominance indicator has dropped below 50% for the fourth straight day. This is often seen as a sign that altcoins may perform better than Bitcoin.
According to the table below, ETH's dominance has increased by more than 18% to three months.
On-chain data provider Santiment shows that Ethereum's price dominance over Bitcoin is increasing, with a +22.4% increase over the past week.
This period highlights the platform's continued growth as approximately 89,400 new Ethereum addresses are created per day. A staggering 96,300 wallets were created on January 16 alone.
The exchange is about to hit an #AllTimeLow (since its opening trading week) of 8.05 percent. Self-maintenance and short-selling implies less short-selling risk, compared to the increasing supply of exchanges.
Link to chart: https://t.co/NQf3x6BGKt
— Santiment (@santimentfeed) January 16, 2024
The data shows that the exchange supply of ETH is close to an all-time low of 8.05%.
This indicates a move towards self-maintenance and overlap, indicating that the risk of short selling has decreased, indicating a more favorable situation compared to the increasing supply of exchanges.
These on-chain metrics shed light on Ether's current market strength and potential to surpass Bitcoin in the short term.
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The Ethereum Dunk update deploys proto-dunksharding on Gorley.
According to information from Ethereum developer Parithosh Jayanthi on social media on January 17th, the new Ethereum network update, “Cancun-Deneb” or “Dencun”, went live on the Goerli testnet.
Gourley fork complete! :Dhttps://t.co/LIa3d4Ml5H
After the repair was patched, the verifiers came back online and the chain began to complete again. The MEV circuit breaker will automatically disable and the mev-blocks will also start leaking.
What a customer difference! https://t.co/cLz3ZRxnXq
– parithosh | (@parithosh_j) January 17, 2024
At the core of Denkun's deployment on the Goerli testnet is the implementation of EIP-4844, which is expected to significantly reduce the cost of transactions on Ethereum layer 2s, such as Optimism, Base, Polygon zkEVM and others. It also limits self-destruct operations and allows for new bridge and pool features.
According to the Ethereum 2024 roadmap, the next big moment in Denkun's testing program will be January 30th, when it is scheduled to be implemented on the Sepolia testnet.
The Holeski Testnet will follow on February 7. The team has yet to announce a date for implementing the update on its main network.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
