Ethereum price weekly analysis 17 July: Rumours of a recovery may be exaggerated
Ethereum's price rises but it's still too early to call this a real recovery.
Key takeaways
- Ethereum has gained almost 15% over the last week.
- Traders came back to the market although volumes are still down for the quarter.
- There's alot of optimism but it's still early days.
After spending most of the week trading in a tight band around the $440 mark, Ethereum took a step forward on Monday and pushed that trading band up to the $480 mark where it held all day.
That pump came on the back of increased trading volumes. Market participation has been down over recent weeks but the market surge seen on 17 July was on the back of a jump in 24 -hour trading volumes. After sitting at $1.3 billion and $1.5 billion for much of the week, volumes leapt to around $2.2 billion for a short time as ETH's price surged.
We're seeing a similar surge right now as the price has crossed the $500 threshold for the first time in about three weeks.
Over the last three months or so, ETH has been following a pattern. It trades within a narrow range for a few days and then the market makes a move. For most of the last three months, those moves have been downward. But for the last two weeks, we've seen the price hold within a narrow band and then a rise. And while trading volumes remain relatively low, we are seeing more bullish traders test the waters at higher values, rather than the dips we've seen when the bears have been in control.
A steady flow of positive news and evidence of gradual institutional adoption are having an effect on markets, according to FXStreet.
But we have been in a "deep bear trend" according to NewsBTC. So it's going to take some time for the price of ETH to recover. But with $500 now back in play, it's saying a break over $550 could see ETH make a moon-jump all the way to $1,000. Frankly, that seems optimistic seeing we've been in a steady market decline since January, with just the occasional bright light as prices take a small step forward after several backward falls.
Speaking to Bloomberg, Larry Fink chairman and chief executive officer at BlackRock, who we noted yesterday was looking at cryptocurrencies, said that interest from his clients was subdued.
"I’ve not heard from one client who says, ‘I need to be in this’."
But he also added, "When it becomes more legitimatized, when it has a true open nature of it that you can identify who the players are on both sides, that’s when we’ll probably look at it."
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
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