Summary:
- CryptoQuant CEO has pointed out that Ethereum is undervalued in terms of Institutional buying
- Institutional investors will eventually add more Ethereum to their bags
- Ethereum held on crypto exchanges continues to decrease and is at a 1.5 year low
- ETH miner’s balances are at a 2-year low
- Ethereum whales have also decreased their holdings via selling ETH
- All factors point to a bullish future for Ethereum
The CEO of CryptoQuant, Ki Young Ju, has pointed out that Ethereum is undervalued in terms of institutions buying ETH. According to Mr. Ju, institutional investors will eventually stack more Ethereum in their portfolios in addition to Bitcoin.
Mr. Ju used the ratio of Ethereum to Bitcoin held by Grayscale to conclude that it is very low when compared to the ratio of the two digital assets in terms of market capitalization. He pointed out that there is currently a 27% gap in this ratio that will soon be filled. His complete analysis can be found via the following tweet.
$ETH is undervalued in terms of institutional buying.
Institutional investors would eventually consider $ETH for their portfolio next to Bitcoin.
– @Grayscale $ETH AUM : $BTC AUM = 1 : 7.76
– $ETH Market Cap : $BTC Market Cap = 1 : 6.0727% gap here. They will buy more $ETH.
— Ki Young Ju 주기영 (@ki_young_ju) December 29, 2020
Ethereum Held on Crypto Exchanges and By Miners Sees a Significant Drop
Yesterday, the team at Santiment feed identified a reduction in the amount of Ethereum held on crypto exchanges and ETH held by miners. According to Santiment, Ethereum held on crypto exchanges is at a 1.5 year low and that held by Ethereum miners is at a 2-year low.
On what is normally the slowest trading day of the week, #Ethereum cracked $700 on a great #altcoin Sunday for the first time since May 19, 2018. $ETH miners balances are at a 2-year low & supply on exchanges at a 1.5-year low. Both great validators.
Ethereum Whale Holdings are Declining
Furthermore, the amount of Ethereum held by whales has been on a continual decline thus pointing to the possibility of selling by this category of investors. This fact was also highlighted by the team at Santiment who provided the following chart demonstrating the reduction in Ethereum whales since mid this year.
Ethereum has a Bullish Future
From the above observations, it can be concluded that Ethereum has a bullish future ahead that could see ETH bulldoze its way towards the 2018 all-time high of $1,400.
However, traders and investors are reminded that Bitcoin has a considerable influence on Ethereum. Therefore, having an eye out for sudden Bitcoin movements is advised moving forward.