Ethereum posted a rare gain today, grabbing around 17 percentage points in a 24-hour period, after sinking steadily from $371.51 on June 19.
Ethereum headlined Monday’s crypto market recovery, reaching $168.32 over the prior day’s $134. Nevertheless, the price is still down $53.93 from where it stood a week ago, marking a 32% decline. Ethereum currently has a market cap of about $15.9 billion.
The number two crypto has lost more than 67% of the $282.31 it held on July 4. Its losses have been bigger than bitcoin’s, which has extended its dominance of the total bitcoin market largely at Ethereum’s expense.
Ethereum Still Struggles
Today’s boost made little impact on Ethereum’s share of the cryptocurrency market. Ethereum holds 22.23% of the market compared to bitcoin’s 47.38%.
On June 19, when Ethereum had a $371.51 price and a market cap of $34.41 billion, it had narrowed the gap with bitcoin, commanding 30.64% of the total crypto market compared to bitcoin’s 37.83%. As of July 6, Ethereum was no longer gaining its share of the total crypto market. Ethereum held 24.62 percent of total the crypto market while bitcoin held 42.36 percent.
Ethereum prices have followed the trading pattern of nearly all digital currencies making highs in early June above $400 per coin. It is an acceptable expectation that the Ethereum coin has a pullback under $200.
More Price Stability For Ethereum?
Analysts have stated that the current price floor of Ethereum is more stable than before.
eToro analyst Mati Greenspan told Business Insider that the decline in the market cap of Ethereum is a normal correction resulted from its exponential rise since January of 2017. Earlier this year, the market cap of Ethereum was below $1 billion.
Greenspan also noted that concerns around the ICO market and its bubble-like nature have triggered a decline in the market.
Over the past few months, the market cap of Ethereum rose at a rapid rate due to the emergence of the ICO market and the successful initial coin offerings of Bancor, EOS and Tezos. However, the majority of blockchain projects that conducted ICO campaigns did not present any working or viable products at the time of their campaigns and are yet to demonstrate any software that have gone through alpha testing.
Price Correction Was Predicted
Nicola Duke, a Forex Analytix technical analyst who uses historical price data to determine future price movements, predicted in late May that Ethereum, which was still on an explosive growth path, could experience a 38.4-point fall from its then $227 price.
Looking at a longer term, Ethereum’s price has remained well above the lower teens which it held all year up until beginning the fast climb that began in March.
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Last modified: March 4, 2021 4:58 PM