Ethereum price breaks $3,500 and hits 3-month highs against Bitcoin
The second-largest cryptocurrency reaches its best levels against Bitcoin and the dollar in more than three months.
The ETH/BTC exchange rate rose 3.13% to hit 0.07475 for the first time since June 9. Meanwhile, bids for ETH/USD climbed 3.4% to $3,546, the highest since May 18, showcasing a renewed upside sentiment in the second-largest cryptocurrency market after it consolidated sideways for more than three weeks.
Ether’s price jump appeared despite a wobbling price behavior across the cryptocurrency market. For instance, Bitcoin prices remained stuck around $47,000 while eyeing a clear breakout move above their psychological resistance level of $50,000.
Similarly, Ethereum’s top rival Cardano (ADA) also consolidated sideways following its 100%-plus price rally in August, while its market dominance fell from 4.54% between Aug. 8 to 4.26% at the time of writing.
Ethereum’s run up above $3,500 coincides with a decline in ETH reserves across all exchanges.
Blockchain analytics firm CryptoQuant reported that the amount of Ether held in exchange wallets has declined from 19.45 million on Aug. 18 to 18.75 million today.
However, analysts perceive falling reserves as bullish, arguing that traders primarily withdraw their coins from exchanges because they choose to hold them instead of selling them for other assets.
Additionally, more upside cues for Ether prices have emerged due to supply squeeze prospects.
CryptoQuant data shows that more than 6% of Ether’s supply now stands locked inside the Ethereum 2.0 smart contract, i.e., about 7.28 million ETH, worth $25.77 billion at current exchange rates.