On Sunday, May 9, the prices of the second-largest cryptocurrency by market cap breached the $3,900 level and closed in on the symbolic $4,000 mark.
According to CoinGecko, the new all-time high saw the rate reach $3,990.60.
Market capitalization of the cryptocurrency sector surpassed $2.5 trillion, with Ethereum accounting for 18.1%. Bitcoin’s dominance fell to 42.9%.
CryptoQuant CEO Ki Young Ju noted that Ethereum on exchange wallets has been shrinking since August 2020, reducing supply of the asset.
Since mid-April, the Coinbase premium for the cryptocurrency has remained at elevated levels, the expert said.
Still an insane $ETH Coinbase premium.
Selling $ETH now seems not a good idea in the long term. Follow US institutional investors, not against them. https://t.co/mZcGk6Gvrs pic.twitter.com/IX8cVP1ppY
— Ki Young Ju 주기영 (@ki_young_ju) May 8, 2021
“Selling Ethereum now seems not a very good idea in the long term. Follow US institutional investors, not against them,” says Ki Young Ju.
The role of institutions in Ethereum’s rally was also noted by The Block News Director Frank Chaparro. He said that when the cryptocurrency first crossed $3,000 he asked traders at the largest OTC desks whether they thought the rally would continue.
Back when Eth first crossed 3k, I asked traders at the market’s largest OTC desks if they thought the rally had legs. One thing they told me then was that corporate treasuries were ramping up allocations. Trend is continuing. pic.twitter.com/TD8dyHqrcI
— Frank Chaparro (@fintechfrank) May 8, 2021
“One thing they told me then was that corporations were increasing their allocations. The trend continues,” Chaparro stressed.
In April, analysts at Fundstrat forecast Ethereum to levels above $10,000 in 2021.
The Kraken experts allowed the cryptocurrency to surge to $15,000.
JPMorgan experts believe that Ethereum’s outperformance of Bitcoin in recent weeks has fundamental reasons.
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