Bitcoin has been relentlessly chomping into the altcoin markets for the best part of the last month as its dominance has risen to a high of 60 percent for seventeen months. It is expected that Bitcoin will inevitably cool off and pull back, but will traders return their profits to fiat or choose low-priced alternatives like Ethereum?
The prices of Ethereum are on the floor. Ethereum is currently rallying, but the long-term picture still reveals that ETH is depressed at mid-2017 prices, down 84 percent from its $1,400 all-time high. Comparatively, in six weeks, Bitcoin has nearly doubled and is only 60% off its peak price.
In June 2017, Ethereum shot at $ 400 and then again in early September, but spent a lot of time hovering around $ 200 to $ 300. It only really started in a short lived rally that was on the way down again by mid-January in December of that year.
Since then, in mid-December 2018, Ethereum nosed nearly 94 percent to a $85 low. It showed limited signs of recovery, but the performance of others like Litecoin and Binance Coin blitzed it. When Bitcoin corrects and traders seek cheaper alternatives, that could change everything.
Crypto trader’s’ CryptoFibonacci ‘ moniker wrote;“It makes sense, with the money some people have made on BTC, they will naturally rotate back to some beaten up Alts they like. The key here is to see what reacts well and what does not. A lot of these Alts will not be around in a year, so be careful IMO.”
Ethereum would be a good choice as it still has enormous potential and is expected to see massive upgrades later this year. Add its low price to that and we could see a move up to $ 300 pretty fast. Other traders like ‘ The Crypto Dog ‘ have written
“I am currently long $ETH/$USD. #Ethereum currently at resistance, if it can break this range high I think we see $240 very soon. Next target after that: $300.”
Ethereum is currently in resistance just over $ 200, but if it can be broken due to a short-term outflow from Bitcoin, it could well go further. Added ‘ Crypto Fib ; ‘
“Getting close to major resistance. But it is also forming an ascending triangle. Expecting a retrace here soon but then to break out higher after.”
At the time of writing, according to Coinmarketcap.com, Ethereum had one of its best days of 2019 with an increase of 10 percent from just over $200 to $220. Daily volume is at a solid $13 billion, with ETH’s market cap reaching $23 billion, its highest for seven months. Ethereum is slowly pulling itself off the ground, but the second largest crypto asset in the world still has a long way to go.
It makes sense, with the money some people have made on BTC, they will naturally rotate back to some beaten up Alts they like. The key here is to see what reacts well and what does not. A lot of these Alts will not be around in a year, so be careful.