At press time, the second largest cryptocurrency in the world and the primary competitor to bitcoin has experienced a near $25 price spike since yesterday, and is now trading for nearly $475.
Ethereum, like many major forms of crypto, seems to be enjoying the first steps of its recovery along with bitcoin, which spiked to $6,600 during today’s early morning hours; Ripple’s XRP, which is currently trading near the 50-cent mark; and bitcoin cash, which is holding firm at $740.
This is the first time in several days that Ethereum has crossed the $450 threshold. It also marks an important time when the bears seem to be losing their control. Figures like Fred Schebesta – co-founder of personal finance firm Finder – are growing very confident in the market as price spikes are not just reserved to one kind of coin.
“While the total volume [traded] has dropped once again, this is the first week in a month that over half of the coin prices have increased,” he comments. “With 51 percent of coins increasing in price, we may be seeing an end to the recent bearish trend.”
One source, however, says it may be too early to celebrate. It says the currency needs to move above $460 to develop a “sustainable recovery,” which it ultimately has, though how long it can stay at this level is open to question. So far, the currency’s market cap has jumped from an even $44 billion to $44.9 billion, while the average daily trading volume sits at $1.4 billion.
Interestingly, the source is saying that Ethereum encountered a short-term pushback over the weekend after a new wave of selling orders came into the mix, suggesting the coin could trade sideways over the next few days unless broader movements take place. However, once this area clears, Ethereum could pave its way back to $827, where it stood in early May.
Right now, resistance stands at $476, while critical support lies all the way at $400 – where new buyers are waiting for their turn to jump into the mix. If selling pressure were to get worse or break the coin’s current stand, Ethereum may find itself falling back down to $359, where it was trading in early April.
Financial and technology firm Autonomous NEXT blames a heavy wave of initial coin offerings (ICOs) for the recent falls in the crypto market, as many companies that raised digital funds are now selling off undistributed amounts of ether to pay their employees.
“ICOs were the reason the crypto prices shot to the moon last year, and they are also (part of) the reason why we are now seeing a prolonged weak market,” the organization reported.
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