Why Has Ethereum Grown 66% in a Week?

Last Modified:16 Feb 2019 09:48:04
Why Has Ethereum Grown 66% in a Week?

Ethereum price has reached $138 from $83 in a week since December 16, and it was a %66 increase. Ethereum reached its highest record in a short run among main cryptocurrencies at the exchange market such as BitMEX and Bitfinex. Ethereum price was influenced by oversold condition, and simultaneously, short-term contracts of this cryptocurrency caused its market improvement.

Were these changes positive or negative for Ethereum?

Although Ethereum price increased 66% in a short period of time, it is still 91% lower than a highest registered record; i.e., $1448. In a traditional market, a 20% decrease from its highest registered record creates a bear market. Therefore, even with a sudden 66% surge, Ethereum and other market cryptocurrencies will be at the bear market and try to get out it.

A sudden exit from the large resistance in the market can lead to its high vulnerability of that market and will experience a large falling trend in a short run, especially if it cannot act successfully and maintain its value in this condition. Hsaka, a cryptocurrency analyst says that Ethereum is an appropriate option for the short-term investment, since this cryptocurrency market is unpredictable and its prices has found a high, increasing fluctuation recently. This analyst also told that there is an almost clear difference between Ethereum and Bitcoin structure. Ethereum is a better alternative than Bitcoin for the short-term investment.

Lately, a well-known cryptocurrency exchanger with the nickname of The Crypto Dog explained that Bitcoin encounters resistance in the price range of $4000 to $6000 until the dominant cryptocurrency exits this range. Currently, there cannot be told whether we have reached the market bottom. Crypto-bottom refers to a state that a market finds rising flow after a time of falling flow. This exchanger explained that “the major Bitcoin resistance is from $4000 to $4500 and it might increase more than that; however, I don’t think it can reach something more than $5400. I can definitely say that it will not increase more than $6300.”

In the second half of December, Bitcoin, Ethereum, Bitcoin Cash, Ripple, and many other cryptocurrencies have turned much profit against Dollar. An ideal scenario for the cryptocurrency market is its gradual value increase from its present point to the next month, January, to have a good start in 2019.

Can the cryptocurrency market keep this forward-looking movement?

Before 66% growth of Ethereum, Bitcoin Cash value had reached $238 from $75, and Bitcoin value had reached $4000 from $3210. Major cryptocurrencies market had held a lot of liquidity and reached $20 billion in a day. As long as Ethereum and Bitcoin are able to keep their exchanges volume, small cryptocurrency markets will probably act similar to these two cryptocurrencies.

How will the Ethereum market be in the next year?

accurate prediction of cryptocurrencies market is hard, Ethereum rising growth in recent days has caused investors to make a long-term investment on it. This important question has been raised for many people that “how will Ethereum future be?” One major difference of Ethereum with other Tokens is that it provides a powerful decentralized process and large bandwidth. Therefore, Ethereum is not just a token for the investment and its value will increase in the future. It is expected in the next year, 2019, for Ethereum to have a value equal to $500. Following that, in 2020 it is predicted for Ethereum to reach $2000; however, through analyzing the Ethereum market, it can be observed that there is still a long way to arrive at that point.