Ethereum Climbing Up at Bitcoin Uncertainty

Ethereum price rise is closely connected to the negative news around Bitcoin.

Photo: tiendientu vietnam / Flickr

Photo: tiendientu vietnam / Flickr

Ethereum price is on its way up this week, although its momentum is not as strong as in case of other altcoins. The most expensive cryptocurrency lost as much as 30% in just two hours earlier this week, starting to recover later. While the market players were getting rid of Bitcoin and switching to other cryptocurrencies, Ethereum performance was more or less positive. Once this driver is over, Ethereum price will be back on its slow uptrend (or consolidation) track without strong moves.

Vitalik Buterin, Ether developer, said earlier on Ether Developers Conference in Mexico that he was going to limit cryptocurrency issue by taking fees from apps created on the basis of Eth, but the market did not show any reactions to this. The idea behind this decision would be decreasing the number of Eth coins in circulation, which, according to market laws, would reduce Ethereum supply and make the price rise. Still, one cannot be sure this will work in case of Ethereum.

Technically, Ethereum price is still in recovery, which started on Sep 16, while the highest high achieved during this period is$350, with the current price being $329, and the average at $300. The market players would want it to reach the $412 high, but the market conditions are more favorable for other assets. Against Bitcoin, Ethereum is performing 3 times worse that it did in June this year.

In the short term, Ethereum price could rise to $342 or $345, with the market goal being at $350 (Oct 16 high). In case Bitcoin becomes attractive again, Eth can well drop till $316 too.

Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.

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