Ether price rebounded today. (Photo by Jordan Mansfield/Getty Images)
Ether prices rose today, leaving the digital currency to recoup all yesterday’s losses after setbacks from the steady upward trend of the past few weeks.
The second-largest digital currency by market value climbed to $1,639.60 around 5 p.m. EST, according to CoinDesk data.
At this point, the digital asset experienced a notable rally after approaching $1,520 last night, up more than 8% in 24 hours, additional CoinDesk figures reveal.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
profit taking
Some analysts believe yesterday’s losses came as investors made gains after the cryptocurrency surged more than 35% year-to-date.
When asked if Ethereum’s recent decline was a result of investors capitalizing on those gains, Jordy Pasquale, CEO of cryptocurrency hedge fund manager Bitbull Capital, said in an email: provided an answer.
“Yes, both BTC and Ether have faced corrections in the last 24 hours, mainly because the preceding rally lasted longer than most participants expected and started showing signs of fatigue.” he said.
Marc Bernegger, co-founder of Crypto Fund of Funds Alto Alpha Digital, also spoke on the issue and provided his insight through email comments.
“With many traders and hedge funds performing well so far this month, it’s not uncommon for them to take some chips off the table and realize those gains,” the analyst said.
After Ether started falling yesterday, it has fallen to $1,500. DiPasquale described this as a significant level of support and went on to recover.
Ether Perspective
To better understand future Ethereum trends, DiPasquale advised traders to monitor the price of the digital currency and its reaction to major economic developments in the coming days.
He said investors will receive updates on inflation, GDP and Federal Reserve policy decisions in the next week or so.
Tim Enneking, Managing Director of Digital Capital Management, also gave a different take on the situation, speaking on ether’s outlook.
he said: ”
The analyst expressed doubts about the market’s ability to price Ether in an appropriate manner.
“It seems to me that there is still some uncertainty in the market as to how ETH will be priced exactly after the ‘merger’ and the transition from PoW to PoS,” he said.
“Additionally, given the increasing concentration of ETH in the hands of large staking consortia, the approach to ETH may be shifting from ‘valuation/speculation’ to ‘storage/income’. Yes,” added Enneking.
“If true, it means the current trend of underperforming relative to BTC will continue.”
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and Sol.
