Ether Prices Bounce Back To Erase All Losses Following Recent Decline

Ether prices surged today, causing the digital currency to recoup all the losses it suffered yesterday when it retraced from the steady uptrend of the past few weeks.

The digital currency, the second largest by market value, rose to $1,639.60 around 5 pm EST, CoinDesk Data shows

At this point, the digital asset had appreciated more than 8% in the space of 24 hours, experiencing a notable rally after nearing $1,520 last night, additional figures from CoinDesk reveal.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

profit taking

Several analysts attributed yesterday’s losses to investors taking profits after the cryptocurrency rallied more than 35% since the start of the year.

When asked if ether’s recent declines were the result of investors cashing in on these gains, Joe DiPasquale, chief executive of cryptocurrency hedge fund manager Bit Bull Capitaloffered the following response via email:

“Yes, both BTC and Ether faced corrections in the last 24 hours, mainly because the previous rally lasted longer than most participants expected and started to show signs of exhaustion,” he stated.

Marc Bernegger, Co-Founder of Crypto Fund of Funds AltAlphaDigitalhe also spoke on the matter and offered his perspective through emailed comments.

“As many traders and hedge funds have performed stellar this month so far, it’s not unusual to take a few chips off the table and take these gains,” the analyst said.

After Ether started to decline yesterday, it fell to $1,500, which DiPasquale described as a crucial support level, before proceeding to rally.

ether perspective

To get a better idea of ​​where ether will trend in the future, DiPasquale encouraged traders to monitor the price of the digital currency, as well as how it responds to key economic developments, over the next few days.

He noted that in the next week or so, investors will receive updates on inflation, GDP and the Federal Reserve’s policy decisions.

Tim Enneking, CEO of digital capital managementHe also spoke about the ether perspective, offering a different perspective on the situation.

He stated that “ETH has underperformed quite a bit compared to BTC this year quite significantly, perhaps best illustrated by the fact that BTC’s dominance has risen from almost exactly 40% at the start of the year to 42.5%.” % now, while ETH’s share of market cap is virtually unchanged.”

The analyst expressed doubts about the market’s ability to properly price ether.

“It seems to me that there is still uncertainty in the market on how to accurately price ETH after the ‘Merger’ and the switch from PoW to PoS,” he stated.

“Furthermore, given the increasing concentration of ETH in the hands of large staking consortia, the focus of ETH may well be shifting from ‘appreciation/speculation’ to ‘preservation/income,’” added Enneking.

“If true, that would mean that the current trend of underperformance relative to BTC will continue.”

Disclosure: I have some bitcoin, bitcoin cash, litecoin, ether, EOS, and sol.


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