Ethereum is seemingly on a path to recovery after hitting a low of $130 by gaining nearly $40 and currently trading at $165 at the time of thie writing.
The Ethereum price recovery saw the cryptocurrency’s market cap return to just above $15 billion. The volatility of Ethereum was evident after the digital currency sold for as high as $230 recently, eventually plumetting to a low a $130 and then gaining $40 in a matter of hours to trade at $170.
Some cryptocurrency analysts believe that the activation of segwit2x, which is likely to be delayed, could have aided the price rise, but a bounce after a huge sell-off is a common occurrence. One of the most common questions that Ethereum investors and users will be having on their minds is whether this particular increase indicates a turn of the market for ethereum, or whether its just a rise before another fall.
Those on the bull side would be asking who is left to sell as yesterday’s capitulation might have left bears with nothing more to play. Further, the impending bitcoin split may lead some bitcoiners to find shelter in eth, as ethereans found shelter in bitcoin during eth’s split last year.
But the reverse of that argument can be used by bears who might think the split may send everyone to fiat, waiting it out. From observation, ethereum has been doing so recently as shown by its far higher trading volumes.
So the bitcoin worries might be more of an excuse, rather than a cause, with the actual reason probably being the bull and bear cycle.
Where they end and where they begin is usually obvious only in hindsight. But there is an argument to be made for ethereum about sell the rumor and buy the news, which might turn sentiment, as the picture now becomes somewhat more clear, with a bitcoin split seemingly certain.
As such, attention may re-focus on eth in the coming weeks while bitcoiners figure out the value of the two currencies, but we’ll have to wait and see how it all plays out.