Huge Ethereum purchase wall sends ETH to 19-month high against bitcoin

With Ethereum’s Ether (ETH) price over $ 450, a major buying wall emerged on Bitfinex, the major cryptocurrency exchange. Shortly thereafter, ETH received $ 270, a 19-month high against Bitcoin (BTC).

Ether price compared to the price of bitcoin. Source: Skew

During the past two months, ETH has steadily maintained an upward momentum to strengthen growing user activity on Ethereum.

Data from Atharscan shows that daily transaction volume on Ethereum increased from 420,000 in January to more than 1.2 million per day in August.

Why the price of ETH is increasing and demand for Ethereum is continuously increasing

The explosive demand for uniswap and small decentralized finance (DeFi) tokens has led to continued demand for ETH. On the Ethereum blockchain network, users have to use ETH to cover transaction fees, also known as “gas”.

As a result of increasing daily transactions, gas costs rise, allowing users to purchase ETH to pay network expenses. Beginning in June, when the Defai market saw a boom, it fueled buying demand for ETH.

According to data from on-chain market analysis firm Glasode, the cost of gas is rising so fast that it is boosting mining revenue. Researcher wrote:

“Ethereum Minors earned a transaction fee in excess of $ 500,000 USD in the past hour. This is a new record high for an hour (such an informal transaction fee earlier this year).”

The trend of trend is unlikely to change in the near-term as the scaling solutions of the second layer and ETH 2.0 are far.

Hourly transaction fee on Ethereum spikes

Hourly transaction fee on Ethereum spikes. Source: Glassnode

Nevertheless, the DIFA market is constantly expanding, moving more users to decentralized platforms like Uniswap. It remains to be seen whether the buying demand for ETH will increase throughout September.

Defying the demand, whales or wealthy miners are purchasing ETH. BitFinex Chief Technical Officer Paolo Ardoino said:

“No one really wants to buy ETH on the Bitfinex 7k bid wall.”

Bitfinex is recognized as one of the few exchanges used by Gemini and Bitstamp as well as many whales. 7,000 ETH valued at $ 458 is equivalent to $ 3.2 million, a large single order on an exchange.

Buy 7.044k ETH Wall on Bitcoin

Buy 7.044k ETH wall on bitcoin. Source: Paolo Ardoino

What traders say about short term trends

In the near term, traders are generally optimistic about the price of bitcoin and ether. Both top cryptocurrencies saw their respective monthly candlesticks close at a multi-year high.

Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said a slight consolidation was likely. After that, Van de Pope suggested that another attempt at $ 12,400 is possible to price bitcoin, with ETH being the flagship. She said:

“Boom. $ 12,000 has reached the area that I have reported since weakened. Would like to see consolidation above $ 11,600 here. If it does, we will see a rally towards $ 12,400 and new heights at the most. $ ETH already made the painting. “