The co-founder and creator of Ethereum blockchain, Vitalik Buterin, recently called for an emergency merger between PoS and PoW protocols on Ethereum. However, a sudden appearance of third-generation blockchain Cardano has drifted the super cryptocurrency towards troubled waters. According to recent reports, Ethereum reserves are following a downward spiral. The current bear trend has taken the master DeFi blockchain to the hindmost level of two years.
The volume of Ethereum reserves is shrinking day by day. The data chart provided by CryptoQuant notices the ‘Mean’ continuous and steady decline of Ethereum reserves on all major crypto exchanges. It should be noted that ETH is the second largest crypto asset in the world. The decentralized blockchain was split into two derivatives by the name of Ethereum Classic and Ethereum 2.0 in the aftermath of a massive hack attack.
The current rampage on Ethereum reserves does not hinder the opinion of crypto hodlers. Both individual and composite Investors continue to bet their money on Ethereum despite the current decline. It is being said that different DeFi protocols have started to lock out Ethereum reserves after purchasing.
On the other hand, NFT markets that are registered on Ethereum are soaring that has created a higher demand for its derivatives. The reinforcements on Ethereum 2.0 have climbed up as far as 3.552 million ETH. The evaluation of the blockchain is on a serial-decline trend as Ethereum continuous to witness major whale activity in its ecosystem. Grayscale has also tipped the price by accumulating around 47,895 ETH in 30 days. Several holdings and wallet deposits of Ethereum are lying dormant in off-line storage.
Is Ethereum Looking at Bitcoin?
The data projection from CryptoQuant visibly indicates that Ethereum has reached the mark of $1,815 at present. The $1800 ATH mark paved the way for Ethereum to break out of the 2K threshold back in February. Due to the much-needed market relaxation of the weekend, it is possible that Ethereum would be able to climb up the $200 ladder and reach the $2 K spot again.
If Ethereum wants a chance to climb higher in the markets, it would be looking at flagship cryptocurrency Bitcoin’s behavior. Like other altcoins, Ethereum also depends upon a bullish wave from the king of crypto. The concurrent occurrence of bull waves would help ETH prices to rise higher and hit the $2K mark.