Matt Kaye, a managing partner at Blockhead Capital, recently said that he thinks ETH will soon move to all-time highs and beyond.
He noted that institutions are starting to pay attention to Ethereum while trends around DeFi will fuel the demand for the coin even further. With Grayscale’s Ethereum Trust also reopening soon, ETH will continue to see an influx of demand, Kaye suggested.
Aside from increased demand, ETH appears to benefit from exhausting merchant liquidity, according to Ki Young Ju, CEO of blockchain analytics firm CryptoQuant.
ETH’s on-floor reserves are down 20% from May 2020. Slippage can be a result of investors holding ETH directly or transferring their money to decentralized finance or staking Ethereum 2.0. , creating a supply shortage in the market.