At press time, the second-largest cryptocurrency by market cap and the number one competitor to bitcoin is up by approximately nine dollars from yesterday and is trading for about $363.
Ethereum is part of the recent bloodbath that struck the crypto space. Everything began with bitcoin – the father of crypto – when it fell by over $900 in just 24 hours following the SEC’s announcement that it was postponing its decision-making process regarding the bitcoin ETF submitted by VanEck. This was the company’s third attempt since March 2017 to get a bitcoin ETF approved by the SEC, and for the first time, appeared to be in good standing with the organization.
Cryptocurrencies overreacted to the news, as following bitcoin, virtually every major altcoin saw itself traversing red territory. Ethereum dropped by over $50 in this space (roughly ten percent in 24 hours), while entities like Litecoin fell by over nine percent, and Ripple’s XRP was soon down by approximately 16 percent.
New York Times journalist Nathaniel Popper mentioned the ordeal on Twitter, but rejected the notion that the crash had anything to do with recent news:
“Has anyone come up with an explanation for why we frequently see this pattern of all the major cryptocurrencies dropping sharply at the same time while generally unconnected to any news and when the sentiment on e-Toro is all positive?”
Ethereum is up by roughly 1.5 percent since yesterday, and while there’s still plenty of work to be done, the currency is slowly pulling itself out of the depths to regain its position on the financial ladder. We can see this by the current price, yet Ethereum’s market cap is at $36.8 billion – down by over $10 billion – while the currency is trading at its lowest level of 2018. For Ethereum to strike back and earn its place, it will need to spike beyond $380. From there, the currency can regain momentum and outmaneuver present resistance.
In addition, the fall to $400 ultimately caused panic amongst Ethereum investors, which triggered massive sell-offs that pushed the currency’s demise further. One source, however, says that Ethereum has a solid chance of recovering over the coming weekend granted that $380 mark is surpassed. From there, we can expect to see Ethereum hit $390 and $400 respectively. However, if it fails to do so, we could see Ethereum drop as low as $330.
When and how Ethereum will spike next is hard to predict, though cryptocurrencies remain popular enough to garner traction in the financial space. Investors are warned, though, that playing with funds they cannot afford to lose is always a risky idea – especially as the crypto market continues to show signs of continued volatility.