Ethereum price weekly analysis: consolidation after a big month
A strong month of growth for ETH is capped off by a week of falls.
- Price is below US$650 after punching through $700 last week
- Trading volumes are steady after a frenzied period
- Market capitalisation sits at around $64 billion after sneaking over $69 billion
It's a new month and ETH continues its overall upward trajectory, although there were some hiccups along the way.
Throughout last Wednesday, Ethereum managed to cross over the $700 barrier before increased trading volumes the next day saw the price plummet to just $600 according to data from CoinMarketCap. That fall was accompanied by a jump in trading volumes to around $4.4 billion before settling back to around the $2.8 billion level as the price slowly recovered to between $680 and $690, where it sat until suffering a drop to below $640 earlier today.
The big question to ask about Ethereum is whether the trend that started a month ago is the one to pay attention to or if the falls of the last week are the start of a long-term trend.
Nigel Green, founder and CEO of deVere Group told MarketWatch that "The price of Ethereum is predicted to increase significantly this year, and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020."
He said this was because Ethereum trading is occurring on more platforms, contracts are expanding and the decentralisation of cloud computing works in its favour. It was also noted that increased regulation is bringing institutional traders to cryptocurrency markets and this could have a positive effect on prices.
In the short term, ETH trading activity may be down as many Asian-based traders are taking some time off for spring holidays.
Disclosure: At the time of writing, the author holds XLM, BTC, ETH, EOS, TRON and XRP.
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