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Ethereum, Bitcoin Prices Stable after Tuesday Pullback

Josiah Wilmoth
Last Updated March 4, 2021 4:58 PM

Ethereum and bitcoin prices led a comprehensive market retreat on Tuesday after Korean traders initiated a sell-off. The two crypto-giants stabilized on Wednesday, with neither one seeing a sustained price movement.

bitcoin price
Chart from CoinMarketCap

The total cryptocurrency market cap actually experienced a bit of a recovery. After dipping below $130 billion on August 15, it has climbed back to a present value of $136.6 billion. This is a 24-hour gain of about $400 million.

bitcoin price
Chart from CoinMarketCap

Bitcoin Price Maintains $4,000 Level

On Tuesday, the bitcoin price dropped below $4,000 after breaking through that threshold over the weekend. It reached as low as $3,906 before rallying back across the $4,200 mark. It has receded a bit in the past few hours, bringing the current value of bitcoin to $4,148. Bitcoin now has a market cap of $68.5 billion.

bitcoin price
Bitcoin Price Chart from CoinMarketCap

There are various theories about where the bitcoin price will go from here. RT host Max Keiser and BitMEX CEO Arthur Hayes believe it will strike $5,000 next, while stock trader Ronnie Moas anticipates $7,500 by the end of the year.  Sheba Jafari, a chief technical analyst at Goldman Sachs, forecasts that the bitcoin price will near $5,000 but eventually crash as low as $2,221. Her analysis is based on Elliot Wave Theory .

Short-term prospects aside, it is undeniable that bitcoin is gaining momentum. Goldman Sachs recently said it is “getting harder [for institutional investors] to ignore cryptocurrency.” Money management firm VanEck–which previously derided bitcoin as a “fad”–has now applied for a Bitcoin ETF. One Harvard academic recently predicted the bitcoin price will hit $100,000 in 2021.

Ethereum Price Struggles to Crack $300

Like bitcoin, the ethereum price was mostly stable on Wednesday following a day of negative movement on August 15. After fighting its way back to $300 following the July market correction, ethereum has struggled to hold above that mark. At present, the ethereum price is $292, resulting in a $27.5 billion market cap.

ethereum price
Ethereum Price Chart from CoinMarketCap

Nevertheless, community members continue to build infrastructure to promote ethereum adoption. Monday, the Enterprise Ethereum Alliance announced the creation of a legal working group to educate the legal industry about blockchain technology and develop Ethereum-based applications for that space.

Altcoin Markets Mixed

The altcoin markets were a mixed bag for investors. The Ripple price experienced another 6% decline to $0.156, reducing its market cap below $6 billion. Neither bitcoin cash nor IOTA saw much movement.

ethereum price
Altcoin Price Chart from CoinMarketCap

The NEM price posted a 13% gain to $0.269, bringing investors relief after a multi-day decline. the NEO price increased about 9%, pushing litecoin to 8th in the market cap rankings. Dash was another standout; its price spiked 10% to $216, raising its market cap to $1.6 billion.

dash price
Dash Price Chart from CoinMarketCap

Ethereum classic rounds out the top 10 with a 1% decline to $13.61.

Bitcoin Dominance Holds Above 50%

Despite Tuesday’s decline, bitcoin retains a dominant market share of slightly more than 50%. Ethereum accounts for another 20% of the market, while the 800+ altcoins share the remaining 30%.

bitcoin price
Chart from CoinMarketCap

Featured image from Shutterstock.