- ETH/BTC pair is hovering at levels last seen during the 2017/2018 bull market
- According to PlanB, Ethereum at current levels of 0.08 BTC could open the doors to 0.12 BTC
- He however cautions that a pullback is usually the next phase after an altcoin peaks against Bitcoin
- An increase in Ethereum withdrawals from exchanges hints that a top is not in for ETH
Ethereum is quickly rising in value when denominated in Bitcoin. At the time of writing, the ETH/BTC pair is trading at 0.075 BTC after posting a three-year high of 0.077 BTC earlier today. The latter value was the result of Ethereum posting its most recent all-time high of $4,372 – Binance rate.
Ethereum Might Pump to 0.12 BTC
The current bullish momentum exhibited by Ethereum against Bitcoin has prompted the creator of the BTC stock-to-flow model, PlanB, to forecast that the ETH/BTC pair could go as high as 0.12 BTC.
PlanB shared his insights via Twitter and cautioned that a pullback is usually the next phase after an altcoin pumps on its BTC pair. His tweet on Ethereum gaining against Bitcoin can be found below.
ETH is now ~0.08 BTC and might even pump to 2017 peak levels of 0.12 BTC. But beware that after a pump altcoins frequently return to their normal BTC denominated ranges (or lower). #Cointegration #PairsTrading pic.twitter.com/fk36Yq6EcE
— PlanB (@100trillionUSD) May 12, 2021
Ethereum Withdrawals from Exchanges Show No Signs of Slowing Down
Since mid-2020, crypto traders and analysts have been tracking the ongoing decline of Ethereum balances on crypto exchanges as investors utilize their ETH on the various DeFi platforms.
In a recent analysis, the CEO of CryptoQuant, Ki-Young Ju, updated on the status of this outflow by highlighting that traders are depositing fewer ETH to exchanges and withdrawing more of it from the same platforms. Mr. Ju went on to conclude that an increase in withdrawals is a sign of the Ethereum ecosystem is growing and that a top might not be in for ETH at this time.
Mr. Ju shared his analysis through the following statement and accompanying chart.
Still incredibly fewer ETH deposits and more withdrawals across all exchanges. It’s hard to say we’re at the top. Increasing exchange withdrawals could indicate Ethereum ecosystem is growing and people are holding them, not selling.
