Ethereum suffers fall but is rallying
The cryptocurrency hasn’t yet breached the $280 barrier but it is still very close
Ethereum’s seemingly unstoppable surge towards a marquee price of $300 (£230, €275) finally slowed down today February 13, 2020.
The cryptocurrency, which has already more than doubled in price this year, seemed set to breach the $280 barrier and shift towards $300.
However, it dropped sharply by $10 this morning. Though at the time of writing (Noon GMT) it was hovering around $264 having rallied slightly.
The correction follows a similar trajectory for Bitcoin, which has risen significantly in recent weeks to peak at $10,500. Yet by noon in the UK it had fallen to $10,228.
Among those who predicted Ethereum’s drop was FX street’s Rajarshi Mitra. In the early hours of the morning he wrote: “The asset is presently pretty overpriced. Firstly, the price is hovering above the 20-day Bollinger Band, while the RSI (relative strength Indicator) is trending around 90.20, within the overbought zone. These two indicators hint at an upcoming bearish correction.”
Analysts have suggested that Ethereum’s surge is down to the appeal of its smart contract system and also the popularity of its ERC-2 tokens. British Ethereum researcher Justin Drake recently posted a tweet that highlighted how the top 25 tokens by market cap are built on the Ethereum platform.
There is also arguably the halo effect of the rise of Bitcoin. February has also been good for some smaller cryptocurrencies. In the past 14 days Ripple has moved from $0.25 to $0.32 while Tron has risen by as much as third this month.
FURTHER READING Can you make money from Ethereum 2.0?
FURTHER READING What will 2020 hold for Ethereum?