Ethereum price weekly analysis: the bull run continues
Confidence in Ethereum driven to new highs after 5% increase in overall market dominance.
The price of Ethereum (ETH) has given traders confidence this week. ETH started the week trading just above US$1,046.31 on 6 January 2018, dropping two days later marginally below to US$1,016.65. The dip was short-lived and ETH showed strong resilience in face of market turbulence, rising to a weekly high of US$1430.81 just before closing the week out only slightly below that high. (All pricing data from CoinMarketCap.)
These price indications appear to have been influenced by an expected change in the Ethereum protocol which will allow the network to process more transactions and begin to rival the likes of Ripple (and perhaps one day Visa) in terms of transactions per second.
In terms of market capitalisation ETH has had a very solid week, edging slightly lower initially from US$101 billion down to US$98.4 billion on 8 January in line with the week's price trough. In a similar pattern to the price movements of ETH, its market cap moved upwards strongly from that low to finish out the week just below its weekly high of US$138 billion. That represents a solid increase of over 36.63%
ETH’s market dominance also increased, rising this week 5.67% from 12.70% to 18.37%. This figure signals a major shift in the broader cryptocurrency market which has also seen market leader bitcoin lose over 5% of its market dominance during the week.
What this could signal is that new entrants to the market are cutting their teeth with ETH. This is because technical indicators suggest a more stable market to gain experience with relatively lower risk.
24-hour trading volume
24-hour trading volume began at US$4.7 billion on average, rising to a midweek average of US$10 billion. By the end of the week it had settled to start-of-week levels, closing out at around US$5 billion worth of 24-hour trade.
Trading volume this week has suggested a slight maturing in the Ethereum platform overall. ETH showed strong peaks with regular lulls, meaning that the ETH is developing into a more regulated platform with more guarantees for investors.
The numbers presented here seem to be favourable as market conditions and blockchain governance converge to create a climate conducive to growth. Blockchain governance is likely to be a key factor.
That will mean new entrants to the cryptocurrency markets will find a relatively safer place to hold assets in the form of ETH.