Ethereum (ETH) Recovers Quickly to Rise above $220
Despite the price pressure, ETH has proved for now it would not suddenly crash to zero.
Ethereum (ETH) is apparently too influential to be taken down by the recent price pressure and short position opening. The coin regained some ground, stabilizing above $200. The recent crash in value was seen not as the doom of Ethereum but short-term market behavior.
ETH made up more than 17.5% of all trades in the crypto market, as shown by Coinmarketcap. The latest activity has been phenomenal, and the price recovery over 24 hours matched that activity. Starting from around $190, ETH prices picked up momentum and returned in the $200 range around 13:00 UTC on Thursday. The climb continued after that, with ETH reaching $221.97 as of 3:30 UTC on Friday.
During the recovery, ETH traded almost equally in its most active pairs, with 32% of volumes against Tether (USDT), around 28% against Bitcoin (BTC), and 26% against US dollar positions. Based on data from CryptoCompare, “other” exchanges still account for more than 16% of volumes. The direct effect of BitMex, an exchange allowing short positions, has been removed from Coinmarketcap.
Otherwise, ETH volumes are distributed among exchanges, both as a speculative asset and as a quote currency, giving liquidity to other coins and tokens.
Bitcoin maximalist WhalePanda still believes ETH will have a hard time reclaiming its peak prices against BTC. ETH now trades at around 0.03 BTC, near the levels from December 2017, before a short-term bull market saw it vault to 0.1 BTC. The current price weakness against BTC may be the new rule for a while:
However, the Ethereum network has yet to prove itself as developers test the smart contract capabilities. Distributed apps are still a weak source of growth, carrying a few hundred users in 24 hours most of the time.
Social media conversations indicate that the ETH/USD pairing is seriously shifting in sentiment, starting to invite buyers for a more sustained price recovery.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.