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Ethereum is experiencing a gradual recovery as its price climbs above $3,100. This marks a 2.3% increase over the past day. However, the asset remains in a state of overall decline, down 3.3% over the week. While this modest rebound offers some relief, Ethereum is still grappling with the effects of an overall bearish trend. The ongoing price movement has prompted some analysts to revisit Ethereum’s underlying on-chain metrics to understand what may lie ahead for the cryptocurrency. One key area of focus is Ethereum’s spot exchange reserves. According to a recent analysis by Cryptoavails, a contributor to the CryptoQuant QuickTake platform, the total reserves of Ethereum held on spot exchanges have been steadily declining. This long-term trend points to a shift in how market participants are managing their holdings. Related Reading: Ethereum Foundation Sells Another 100 ETH, But There’s Still ‘Hopium’ For Holders Ethereum Spot Exchange Reserves Trend According to Cryptoavails, Ethereum reserves on spot exchanges have gone through significant changes over the years. During the 2017-2018 bull market, reserves reached their peak, driven by a surge in investor interest. The 2020-2021 period saw another substantial increase, fueled by the rise of the DeFi ecosystem and Ethereum-based projects. However, starting in late 2021, reserves began a sharp decline as large withdrawals from exchanges became more common. By 2023, reserve levels hit a low point, and by 2024, these reduced levels persisted, signaling a potential supply shortage. This reduction in reserves often indicates that holders are withdrawing Ethereum from exchanges for long-term storage, rather than leaving it available for immediate trading. As a result, the diminished supply on exchanges can create upward pressure on prices. Cryptoavails noted that from 2022 onward, as reserves decreased, Ethereum’s price started to stabilize at higher levels. This pattern suggests that low reserve levels could support further price increases, potentially triggering a new upward trend. Technical Analysis Of ETH From a technical standpoint, Ethereum has shown patterns that analysts interpret as bullish. Several prominent figures in the crypto community have shared their insights. One renowned analyst known as Crypto Ceaser recently highlighted a bounce in Ethereum’s price as a significant opportunity, expressing a view that the cryptocurrency is undervalued and may be poised to reach new all-time highs. $ETH – #Ethereum bounced as expected. This was a huge opportunity. Send it. In my opinion Ethereum is heavily undervalued. I think we will see new ATH’s soon. pic.twitter.com/ljMa1lEpJO — Crypto Caesar (@CryptoCaesarTA) January 28, 2025 However, not all analyses paint a uniformly optimistic picture. Anup Dhungana, another crypto analyst, pointed out a divergence between Bitcoin and Ethereum’s market behavior. While Bitcoin has maintained a steady uptrend, Ethereum’s performance against Bitcoin has been less robust, with the ETH/BTC pair forming lower lows. This divergence reflects reduced investor interest in Ethereum relative to other assets. Related Reading: Ethereum Poised To Test $2,800 Support Level If Market Downtrend Persists – Analyst According to Dhungana, the next technical support level for ETH/BTC may lie between 0.028 and 0.026. A rebound from this level could potentially revive broader interest in Ethereum and altcoins, paving the way for another phase of growth. Featured image created with DALL-E, Chart from TradingView
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Ethereum’s active addresses jump 37% – Is institutional and DeFi demand fueling the surge?
Will DeFi big players increased interest in Ethereum boost ETH`s prospects? NewsBTC
Former SEC Chair Gary Gensler Returns to MIT to Focus on AI and Finance
After four years of steering crypto regulations and financial market oversight, former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is returning to the Massachusetts Institute of Technology (MIT). According to a January 27 statement from the research university, his focus will now shift to artificial intelligence (AI), fintech, finance, and public policy. Gensler’s New Role “I am honored to return to MIT, whose faculty, staff, and students have long been at the cutting edge of research and technology,” Gensler said following his appointment. He added that he looks forward to collaborating with scholars at the institution to drive innovation and create a better future through AI, finance, and tech. Before leading the SEC, Gensler worked at Goldman Sachs and later became a professor at MIT, where he studied the impact of AI on financial systems and published research on the risks it could pose to global finance. In his new role, the 67-year-old will co-direct the FinTech AI @CSAIL initiative alongside Professor Andrew W. Lo. This program connects companies with MIT researchers to explore AI’s role in the financial industry. Additionally, the academic will collaborate with Nobel laureate Simon Johnson to teach a course on economic topics billed as being “of great importance to the global economy.” While Gensler’s new position lacks the regulatory authority he held as the financial watchdog’s head, it is expected to be influential. MIT maintains strong partnerships with U.S. tech firms and policymakers, potentially allowing him to continue shaping discussions around finance, AI, and crypto regulations in an academic capacity. Criticism and Concern However, the ex-chair’s return to the institution has not been well received by all. Devin Walsh, executive director and co-founder of the Uniswap Foundation, condemned the decision, stating she was “incredibly embarrassed and disappointed” by the school’s rehiring of Gensler. She highlighted that her introduction to crypto happened through MIT’s Digital Currency Initiative (mitDCI), suggesting that any student of his would be wasting their time, tuition, and energy if they hoped to learn about and support new and innovative technologies. During his tenure at the SEC, Gensler shaped crypto policy through a regulation-by-enforcement approach. Under his leadership, the agency initiated over 125 enforcement actions against crypto firms, classifying many cryptocurrencies, save for Bitcoin and Ethereum , as securities and thus falling under the regulator’s purview. His actions received much criticism from the industry, with some saying that they stifled innovation and created regulatory uncertainty. However, one of the bright lights of his reign was the approval last year of spot exchange-traded funds (ETFs) tracking Bitcoin and Ethereum. The post Former SEC Chair Gary Gensler Returns to MIT to Focus on AI and Finance appeared first on CryptoPotato . NewsBTC
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Bitcoin Jumps to $105,000 as Fed Fears Fade
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