Ethereum's native token, Ether (ETH), may vanquish Bitcoin (BTC) to new all-time highs, fresh analysis reveals.

In a tweet on Wednesday, Ki Young Ju, CEO of on-chain analytics service CryptoQuant, highlighted a "sell-side liquidity crunch" that could yet give ETH the edge over BTC.

Ether liquidity shortfall "intensifying"

With Bitcoin up over l% versus its lows of $29,000, altcoins have also begun to reawaken, with Ether as no exception.

The largest altcoin has recaptured $3,000, a level that, this week, is now in the process of existence retested equally support.

Despite attention focusing on Bitcoin reclaiming $50,000, optimism over Ether remains high later on its successful London hard fork deployment before this month.

Thank you in part to the supply changes pushed through via the difficult fork, a liquidity shortfall could ultimately serve to button ETH/USD to new historic peaks before BTC/USD manages to do the aforementioned.

"$ETH might reach its all-time loftier earlier than $BTC in the long term," Ki summarized.

"Current $ETH price is closer to ATH compared to $BTC. Higher need, lower supply. $ETH sell-side liquidity crisis still intensifies, while $BTC substitution reserve stopped its downwards tendency in May."
BTC commutation reserve chart. Source: CryptoQuant

In terms of numbers, Bitcoin exchange reserves have been declining since May, only to render in late July. From a peak of ii.54 million on July 26, BTC reserves and then declined to 2.44 million this calendar week.

By contrast, ETH has seen a mostly linear downtrend since late May'due south local high of 21.43 1000000 held on exchanges. Every bit of this week, the exchange rest is around 19.25 one thousand thousand.

ETH exchange reserve chart. Source: CryptoQuant

Battle of the supply shocks

Ki is not alone in forecasting a more rampant bull accuse for Ether compared to Bitcoin.

Related: Analysts say this primal metric suggests an altcoin flavor is at mitt

Every bit Cointelegraph reported, Bloomberg Intelligence has besides come out favoring ETH over BTC in a recent report, even forecasting a "flippening" of the largest cryptocurrency.

Meanwhile, data continues to show a supply shock underway for Bitcoin as well — something that has its own historical precedent for sparking BTC price run-ups.

"Illiquid Supply Daze ratio has been a good leading indicator over the by few months," analyst William Clemente 3 commented on the latest figures from fellow on-concatenation analytics resource Glassnode.

"Impulses in both directions have resulted in toll activeness post-obit. As the metric continues to grind slowly upward, currently at levels prev. 58K BTC, watching for some other major impulse."
Bitcoin supply daze annotated nautical chart. Source: William Clemente III/Twitter

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