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.