{"id":116170,"date":"2021-03-09T17:37:29","date_gmt":"2021-03-09T17:37:29","guid":{"rendered":"https:\/\/precoinnews.com\/?p=116170"},"modified":"2021-03-09T17:37:29","modified_gmt":"2021-03-09T17:37:29","slug":"optimism-in-the-air-as-another-104k-eth-leaves-cexs-and-ethereum-price-breaks-1850","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/ethereum\/optimism-in-the-air-as-another-104k-eth-leaves-cexs-and-ethereum-price-breaks-1850\/","title":{"rendered":"Optimism in the Air As Another 104K $ETH Leaves CEXs and Ethereum Price Breaks $1850"},"content":{"rendered":"

With so much good Ethereum news floating about these days and earlier today the ETH price breaking $1850 for the first in over two weeks, it is hard to blame ETH investors for feeling optimistic. <\/p>\n

Ethereum Price Action<\/strong><\/p>\n

Data from TradingView tells us that, on crypto exchange Bitstamp, around 01:34 UTC, the Ethereum price went above the $1850 level for the first time since February 22 and by 03:33 UTC it had reached $1858.85, which is currently today\u2019s intraday high.<\/p>\n

<\/p>\n

Earlier today, crypto analyst Ali Martinex said that in the short term he doesn\u2019t believe that Ethereum price will have any trouble getting to the $1930 level:<\/p>\n

Over the long term, crypto investor Ryan Sean Adams, who is the Founder of Mythos Capital, the author of popular DeFi newsletter \u201cBankless\u201d, and the co-host of the \u201cBankless\u201d podcast, believes that he ETH price could reach $20,000:<\/p>\n

Decreasing Ethereum Balances on Centralized Exchanges<\/strong><\/p>\n

Today, crypto analytics firm\u00a0IntoTheBlock talked about its \u201cNet Flows\u201d indicator (\u201cInflow Volume \u2013 Outflow Volume\u201d) for Ethereum is showing that yesterday (March 8) approximately 104.79K ETH left major centralized crypto exchanges, which is bullish since this lowers selling pressure on ETH. <\/p>\n

Here is IntoTheBlock explaining how what this indicator means and how it affects price:<\/p>\n

\u201cThe Net Flows indicator highlights trends of traders sending money in and out of exchanges. Recall that Net Flows are positive when more funds are entering than leaving exchanges. Therefore, we observe that positive Net Flows tend to coincide with periods following large increases in price (like LINK when it tripled between April and July) or confirmation of down-trends (as seen with LINK in late August).<\/em><\/p>\n

\u201cConversely, Net Flows are negative when a greater volume is being withdrawn from exchanges. This could be seen as a sign of accumulation (LINK in early August) or addresses buying back following large declines (LINK in early September).<\/em>\u201c<\/p>\n

Status of Ethereum Layer 2 Scaling Solution<\/strong><\/p>\n

Here is Ethereum Foundation describe what Ethereum Layer 2 (L2) scaling solutions are designed to do:<\/p>\n

\u201cLayer 2 is a collective term for solutions designed to help scale your application by handling transactions off the main Ethereum chain (layer 1). Transaction speed suffers when the network is busy which can make the user experience poor for certain types of dapps. And as the network gets busier, gas prices increase as transaction senders aim to outbid each other. This can make using Ethereum very expensive.<\/em>\u201c<\/p>\n

Ethereum consultant\u00a0Ryan Berckmans\u00a0maintains a very useful list that shows the status of various L2 scaling solutions:<\/p>\n

<\/p>\n

Last Tuesday (March 2), one crypto analyst (\u201c@0xRafi\u201d on Twitter) explained via an excellent Twitter thread why the Ethereum community is so excited about the upcoming launch \u2014 later this month \u2014 of\u00a0Optimism\u2018s L2 solution Optimistic Ethereum (which uses Optimistic Rollups):<\/p>\n