Compared with bitcoins (BTC) rally to a record price above $61,000 in March, ethers latest bull run to an all-time high over $2,100 was supported by scantier demand from buyers, according to a top blockchain-data analyst.
Philip Gradwell, chief economist at Chainalysis, said on CoinDesk TVs First Mover show that relatively little ether (ETH) was bought at prices above $1,850 and even less was bought at $2,000 or above.
The reason why this is important is because the price that people are willing to buy and hold at tells us the level of demand that there is at that price level, Gradwell said. So not a huge amount of demand at that $2,000 price.
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As of April 5, blockchain data showed there was significant ether accumulation at prices around $1,800, Gradwell wrote this week in a newsletter. That price level is likely to provide strong support because the cost of acquisition indicates historical demand for a cryptocurrency at different price levels. The analysis assumes that the buyers are unlikely to sell their crypto asset at prices below their cost of acquisition.