Ethereum price weekly analysis: As ETH price grows, so does bullish sentiment
ETH has seen an incredible week, increasing by US$400 to over US$1,260, and it doesn't look like it's stopping there
- ETH gains US$400 in one week
- Price of ETH drops over US$200 in a matter of hours, gaining it back almost as quickly
- Vinny Lingham tweets to 107 thousand followers his growing support for ETH
- ETH continues to show promise looking ahead
Ethereum (ETH) began trading the week at US$867.60 after a phenomenal run up from around US$250 in December 2017. The bull run seems to have even further to go next week as ETH sits pretty at US$1202.10 at the time of writing.
In terms of market capitalisation, ETH has a strong upwards trend. It began the week at US$83.9 billion and closed out the week impressively at US$116.4 billion. Not only has there been a strong increase in terms of price and market cap, but also in terms of 24-hour trading volume.
By that metric, ETH has shown a particularly strong increase from a 2 January 2018 volume of US$4 billion to more than doubling that value to reach a 24-hour trading volume of US$8.2 billion at the time of writing on 9 January 2018.
What is astonishing about these numbers is that CoinMarketCap readjusted its calculations of cryptocurrencies on 8 January, resulting in the exclusion of South Korean cryptocurrency exchange data. For the price of ETH, that reduces the average by up to 30%. What it may have climbed to by now without that readjustment is hard to say.
After the readjustment, ETH dropped strongly from an all-time high of US$1,266.93 at 4:55am UTC to a low of US$1,017.05 at 3:15pm UTC. Considering the eleven-hour turnaround, this is an extreme example of the volatility of global markets in action.
But even more incredibly, ETH has almost recouped those dramatic losses, showing strong investor confidence in ETH. This sentiment was supported this week by Vinny Lingham, who tweeted to 107 thousand followers that he is “definitely becoming more pro-Ethereum”, citing an ongoing maturity of the platform in the past year.
On a downside, some reports have surfaced of an increase in transaction fees across the Ethereum platform. While this should in theory attract more miners to the Ethereum network in pursuit of larger mining royalties, in reality this strain on the network gives some doubt over ETH’s prospects as a viable currency.
This is because the issue of scalability effects ETH as a medium of exchange. Luckily, this issue is unlikely to impact ETH in 2018 as investors seek well-established blue chip cryptocurrencies like ETH. Being a long-term issue, this will not worry many investors who see 2018 as the year that ETH will break out.
Looking ahead, the technical indicators for ETH seem to be quite positive and investor confidence seems to be rising with the amount of capital that is being poured into Ethereum. Whether next week will see another US$400 bull run again is unclear. After this week, the cryptocurrency market has shown that anything is possible.