Ethereum, which has been on an explosive growth trend, could be due for a price correction, according to Nicola Duke, an analyst at Forex Analytix. Duke, who recently made a similar prediction for bitcoin, said Ethereum could experience a 38.4% fall from Wednesday’s high of $227 and a 27% drop from Friday morning’s price, according to CNBC.
Ethereum has posted a 2,747.9% rise since Jan. 1, when it traded at $8, according to coinmarketcap.com. Ethereum traded at around $191.78 early Friday.
Ethereum’s price was $162.46 Friday evening, making a $14.939 billion market capitalization.
Duke looks at historical trading patterns to identify future price moves.
Price Fall? Rebound
If Ethereum falls to below $170, it would pave the way to a $140 low, Duke said, marking a 38.4% drop from the $227 high. After falling to $140, it could rally back to $240.
So far, Duke has been correct with her bitcoin calls. She told CNBC if bitcoin got close to $2,800, the price could see some pullback. Bitcoin hit $2,791 Thursday and declined to around $2,571 Friday morning. She said bitcoin’s decline could continue until January before another rally takes hold.
Trader Jim Frederickson noted yesterday that both bitcoin and Ethereum are currently overvalued, due for a correction, and at the present time, he would not buy them.
Bitcoin Supports Other Currencies
According to Daniel Masters, director at Global Advisors Bitcoin Investment Fund, said bitcoin has served as a gateway to other digital currencies that are gaining acceptance. Masters said a diverse cryptocurrency ecosystem is evolving in tandem with fiat currency.
While bitcoin’s rise feeds investors’ appetite for Ethereum and other altcoins, a host of factors play into Ethereum’s popularity, especially in the business and financial communities.
Ethereum supports smart contracts, contracts that automatically execute according to a computer algorithm when contract terms are met. Several financial institutions have invested in Ethereum technology to be able to use smart contracts.
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Last modified: March 4, 2021 4:56 PM