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  • Ethereum price has hit a new three-year high at $1,162 after a massive 63% move.
  • The digital asset could be facing a short-term correction after such a significant rally. 

Ethereum has reached a total market capitalization of $121 billion which is the highest ever due to the increase in circulating supply. The smart-contracts giant has also seen a significant rise in market dominance from 10% in December 2020 to a high of 14.3%. 

Ethereum price might be poised for a pullback soon

Considering the magnitude of the bull move to $1,162, it wouldn’t be surprising to see Ethereum price take a hit before resuming the uptrend. The exchange inflow of ETH has seen a significant spike on January 3 which suggests investors are looking to take some profit in the short-term. 

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ETH exchange inflow chart

This metric coincides with the number of Ethereum coins inside exchanges which has increased since January 1 from 22.6% to 22.89%, again adding credence to the idea of a potential short-term pullback.

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ETH coin supply on exchanges chart

However, it’s important to note that although the supply of Ethereum inside exchanges has increased in the past three days, it’s still in a downtrend since November which overall means that most investors are still not interested in selling.

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ETH IOMAP chart

Furthermore, the Eth2 deposit contract holds more than 2.25 million ETH currently which represents around $2.4 billion at current prices. The In/Out of the Money Around Price (IOMAP) chart shows very little resistance to the upside as bulls target $1,200. There is a robust support area between $1,022 and $1,053 which should serve as a strong pillar for the bulls.