Ethereum (ETH) Revives with 10% Daily Growth
The asset is yet to indicate the possibility of a bullish trend as it remains depressed and unable to return near the $200 level.
Ethereum (ETH) has shown signs of recovery with a recent short-term rally, adding more than 10% overnight. It traded at $137.23 as of 8:00 UTC on Monday, but the uptick seems to be tapering off. In the past few months, ETH volumes increased although the coin’s price remained locked below $150.
The reason for the rally is unclear, but it extends the move above $120. ETH has been trading near recent troughs, and the recovery may be a reaction to the relatively low price. Currently, ETH is one of the most important digital coins in the ecosystem, seeing relatively large flows of funds from Bitcoin (BTC) and into altcoins. Being a part of multiple base pairs adds to the ETH activity.
Additionally, the Constantinople hard fork arriving in 10 days may be adding to the expectations of a rally, at least in the coming two weeks. However, some see the increased volatility as more likely bearish, leading to new selling.
ETH has around 42% of its volumes against Tether (USDT), and they are highly distributed across exchanges. The total share of ETH in all trading pairs is now above 18%, up from customary levels of around 10%. The asset is instrumental in the movements of several leading coins and tokens, including EOS and, in part, Litecoin (LTC). Thus, it is possible that ETH has contributed to the recent LTC rally.
At the same time, Ethereum transactions have slowed down again below 500,000 in 24 hours. The hashrate has also continued to drop in February ahead of the expectation for lower block rewards. Still, the Ethereum network is the most active one when it comes to distributed apps, and there is tentative optimism about the survival of the project.
ETH additionally rises as Maker DAO (MKR) continues to grow its collateral, mopping up about 2% of the coin’s supply, with the chance of storing even more tokens in the future. MKR traded at $557.06 as the project regains liquidity.
The ETH rally also coincided with a market-wide increase in prices led by BTC. The top coin appreciated to above $3,700 at the start of the new week.
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