Ethereum went on a mini bull run yesterday, up from around $190 to a high of $224 before stabilizing at $215 at the time of publishing.
Its trading volumes have also risen above $1 billion for the first time in some days, potentially indicating some renewed interest in the currency.
The movement does not appear to have been caused by any news, therefore it is probably related to the bitcoin hardfork which is to occur today at 12:20 UTC, in just two hours.
Although the fork does not have any direct relation to ethereum, it may affect its price movements dependent on how the event proceeds.
The likely scenarios are just two. High volatility and quick price movements may focus traders on the bitcoin action, so taking funds from eth which may lead to a price fall.
Alternatively, the same high volatility and quick price movements may scare away both traders and investors who may find some safety in ethereum, so potentially sending its price up.
It is probable we will see both at some point or another, with another potential scenario being an increase in all three digital currencies as sidelines money starts moving in once the picture becomes more clear.
For today, bitcoin is somewhat down while ethereum is up, which may suggest some bitcoiners are already diversifying in anticipation of the now imminent hardfork.
But it may be the case ethereum’s price movements are largely unrelated, with the currency going through its own cycle of a bull spring and a bear July.
Whether that bear market is coming to an end is something we won’t know until after the event, but the recent price movements may be quite indicative.
Ethereum reached a low of $130 after its all-time high of $420. Many are now probably wondering whether that is the bottom. Something which we may soon find out.