The recent rollercoaster, whereby ethereum fell by some 30% then rose by some 30%, all within days, sent ethereum’s trading volumes sky-high, rising above $2 billion at one point.
That’s an all time high for ethereum, with the volatility seemingly bringing out all traders and others to take positions in an up or down short term semi-gamble with the resolution seemingly for now being some decent support at $300 and some sideways action.
Ethereum’s trading volumes rose to twice that of bitcoin during the 30% moves, with eth handling more volume than bitcoin and the other top ten digital currencies combined.
That suggests ethereum is leading the space in price movements, with most others following, mainly due to the ETH/BTC pair that drags up or down bitcoin, which in turn then drags up or down other alts as they are usually traded against btc.
That volatility seems to have subsided for now, with ethereum seemingly performing another sharp V recovery, but we’ll have to wait and see how price moves in the coming days for further confirmation.
As for the recent price action, it appears the sharp price fall was mainly due to mega ICOs potentially cashing out and probably due to GDAX flash crash lucky traders, who bought at pennies, liquidating some of the profits.
After the stupendous spring rise, there probably was also some fear of a bubble with jittery hands easily panicking, explaining the very fast movements both up and down.
Now, we’ll have to wait and see how this seemingly sideways action resolves. If it turns downwards, then there may be some serious consideration of a bear market, while another upwards leg from here may suggest a continuation of the bull market.
So the next two weeks are critical as the meme says as the market is seemingly not very sure which way to go. There’s amo for both bulls and bears. On the bear side, what may happen in the run up to August the 1st is of concern.
On the bull side, bitcoin miners have already reached agreement to signal for segwit and 80% of them are signaling for segwit, so there most probably won’t be an August the 1st as miners will probably implement segwit before that date.
On the bull side is also the fact that nothing has changed. There has been no significant event to turn the market, so why should it turn. But then, if price prediction was so easy, we’d all be millionaires. So we’ll just have to wait and see what the market does in fact do in the coming days.