Following the recent market appreciation of Bitcoin, Ethereum has experienced a rebound in value surpassing USD 500.
There is one word that describes the movements of cryptocurrency right now: bullish. Ethereum has experienced a 22.24% gain in just the past 24 hours, moving from USD 450 to USD 500 in quick succession. This means that Ethereum has currently gained 3.42% over Bitcoin.
The current 24-hour trading volume stands at USD 2.843 bn, clearly showing there is still an ardent demand for the currency. When examining Bitfinex, the top exchange platform right now, two fiat currencies hold the top trading spots, indicating new capital entering the market. This will potentially benefit the value of cryptocurrencies further.
Ethereum’s journey to recovery
While the value of Ethereum in late 2017 remained around USD 1,300, this year has already seen the value fall below USD 400.
One of the most significant reasons behind the decline in value can be attributed to Ethereum ASIC miners, set to reach the market by this July. The mining chips destabilized the market through the threat of significantly increasing the efficiency of mining the currency. Priced at USD 800 per unit, the technology threatens to centralize hash power to the producers of the miners, Bitmain.
Some have also speculated that the tax season played a significant role in the downtrend, adding to the bearish momentum it has suffered in the past few months.
It is likely as well that profit-taking from this recent price rebound will kick in fairly soon, as many are still wary of the stability of its value, particularly in light of the ASIC miners.
Often when currencies see a quick escalation in price such as this, it takes a short period for the market to correct itself in portraying the accurate value.
For now, though, it appears the value of Ethereum is seeing a generally positive trend, even if returning to its previous high is still far from reach. This could well be an indication of more positive movements in the market over the weekend.