Ethereum price increased substantially over the last couple of days and from a stable price of around $220, it surged past $260 showing renewed interest in the cryptocurrency as well as possibility of new adopters joining the ETH trading and investment fray.
Increased in trading of Ethereum has also been observed with volumes reaching $1.5 billion levels – an increase of more than a billion.
Analysts believe the surge in Ethereum price is not related to any development or news, but according to speculations the price surge may have occurred partly because David W. Grim, Director of the Division of Investment Management is to leave next month. While Grim departure may have influenced traders in US, Ethereum price surge across the globe can’t be attributed to that.
We agree that because Grim is the top official in charge of approving or rejecting ETFs and now his departure may increase chances of a bitcoin and ethereum ETF, however, this news alone isn’t the reason
What we see here is that decline in Bitcoin Cash price is playing a major role in Ethereum price surge. Bitcoin Cash plummeted from a high of $800 to now around $270. This means that traders were effectively trying to get rid of their BCH stash and instead jumping to Ethereum that has relatively a better hope.
Reports indicate that Bitcoin Cash has started operating as normal with blocks recently being found around every 10 minutes after it triggered a second difficulty adjustment. BCH may surge considering more and more exchanges are joining in and so some level of normality may persist.