Ethereum (ETH) Price Saw a Boost of Around 66% In Just a Week as a Signal of the Bulls Return?
Ethereum (ETH) has been one of the largest gainers among the top 10. Ethereum moved from as low as $83 up to $138 in just a few days. This is a price increase of over 66%. There is only one virtual currency that grew more than Ethereum, Bitcoin Cash (BCH) registering a 140% increase during the last 7 days.
Some analysts suggest that Ethereum experienced such growth due to the fact that there was a record-high of shorts on important crypto trading platforms such as BitMEX or Bitfinex. Users believed that Ethereum was going to keep falling even further. Nevertheless, this did not happen. Indeed, as the market recovered, several short contracts were closed. This allowed the price to keep growing faster than other assets.
Although it has grown substantially during the last few days, the virtual currency remains more than 90% down from its all-time high. Back in January Bitcoin was traded close to $1,400. There are other virtual currencies that lost more than 95% and some others have already disappeared.
Furthermore, in November, the U.S. Securities and Exchange Commission (SEC) announced enforcement actions against two Initial Coin Offerings (ICOs). These ICOs have to pay a fine of $250,000 and give back the funds they’ve gathered to investors.
Since the beginning of the year, virtual currencies have been in a bear market. Bitcoin, the largest cryptocurrency, has fallen more than 82% from its all-time high registered in December 2017. At the moment, it seems that these assets are trying to recover from the bear market that affected the whole industry.
According to the cryptocurrency trader The Crypto Dog, Bitcoin could be traded between $4,000 and $4,500. This level mentioned by the trader can be considered major resistance. Furthermore, he explained that it could go even higher and reach $5,400, but no more than $6,300.
During the last few days, most of the virtual currencies in the market were able to recover part of their value lost between November and December. Joseph Lubin, the co-founder of Ethereum and founder of ConsenSys, explained that the market has already bottomed in 2018.