This is why Ethereum could spark an independent rally

Ethereum, along with many other altcoins on the market saw a sharp rise in price in 2021. The coin was able to quickly break through the coveted $ 2,000 range a month ago, but it was impossible Maintaining higher levels caused ETH to drop lower.

This could also be due to the close correlation of altcoins including Ethereum with Bitcoin’s price action, as BTC is rejected by the low zone of the $ 60,000 zone. However, some strong news lately could help this biggest altcoin conquer $ 2,000 once again.

The amount of ETH on the exchange | Source: CryptoQuant

Looking at market data provided by CryptoQuant, it is found that the amount of ETH on centralized exchanges has decreased since July 2020.

At the time of writing, ETH in the exchange’s wallet has hit a 2-year low and underscores investor confidence in the asset’s long-term outlook. This finding reinforces buyer’s sentiment towards ETH, making it even more immune to sudden sell-offs.

Number of developers on platforms | Source: Santiment

Additionally, Ethereum has also seen steady growth on its platform. While developer activity is not always responsible for price increases, the fact that healthy growth on the Ethereum network is always an encouraging sign for investors and consolidation. their beliefs.

The data provided by Santiment highlights this and also indicates that ETH is not the only altcoin with increased developer activity.

The amount of ETH staking on ETH 2.0 | Source: CryptoQuant

Furthermore, the amount of ETH staking on ETH 2.0 has increased dramatically. At the time of writing, approximately 3.5 million ETH has been staking and this, combined with a substantial amount of ETH on a cold wallet, forms a solid foundation for the uptrend of ETH. We could even argue that around this time ETH could go higher without the help of Bitcoin.