Ethereum Surges Past $700 for the First Time since 2018, ETH Supply on Exchanges Diminishes

The crypto space has proven to be a force to reckoned with as the year nears its close. Record highs have been the underlying tone of the cryptocurrency market, as Bitcoin also spiked to an all-time high this past weekend.

Leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) have given crypto a good reputation as they have demonstrated the tremendous potential to be provided by the crypto room.

BTC surged past $28,000 over the weekend, but at the time of publishing, it has since changed to $26,930. Ethereum, on the other hand, has made a milestone of breaking the $700 mark and is hovering at press time around the $730 range.

New data by Santiment reveals that since May 19, 2018, this price rally by ETH has not been seen. The on-chain data provider recognized that:

“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.”

These figures show that Ether’s crypto exchange holdings have decreased to a low of 1.5 years, suggesting that the investors’ trust is increasing based on the long-term value of this digital asset. This can be because on Dec 1, Ethereum 2.0, also known as the Beacon Chain, went live and intends to introduce the network with a new consensus method called proof-of-stake.

The data provided by Santiment may also indicate a lower selling pressure for Ether, given that a bullish run was made by the Ethereum 2.0 deposits before the much-anticipated launch.

Ethereum‘s surge past the $700 critical psychological barrier is also seen as a side effect of Bitcoin‘s bullish momentum, which increased altcoins as it recorded a new all-time high on Christmas weekend of more than $28,000.

This year, ETH may also take advantage of the side effects of institutional investors’ significant interest in Bitcoin, as large investments from major companies such as MicroStrategy, Square, and more have led to the leading cryptocurrency rising through the roof.

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