Ether even regained its historic spot gracefully in the CoinMarketCap index as it is now once again the second largest crypto based on market cap in the world.
During the last weeks of December, Crypto presented a slightly bullish trend in most markets. However, during the first week of January 2019, this trend has not ended up supporting a strong rise in the prices of Bitcoin and altcoins. Analysts seem to agree that there is a slight presence of bullish sentiment, but it has not materialized in a strong rise or in a recovery of the resounding fall that was suffered back in November.
All these are true facts that apply to all cryptocurrencies, except for one that is showing a trend contrary to stagnation: Ethereum. Its respective cryptocurrency, ETH, has maintained a clear upward trend. And it is outperforming all its other powerful competitors in percentage of price increase. Ether even regained its historic spot gracefully in the CoinMarketCap index as it is now once again the second largest crypto based on market cap in the world.
One more detail about Ethereum that should be brought to light is the
daily volume of transactions that it is reporting, which ranges between $3 Billion and almost $5 Billion. The movement is extraordinary in these first days of the New Year as positive sentiments and hopes for the Ethereum Network are seemingly being revived. It is very possible that after a long 2018 full of negativity, uncertainty and prices falling to very steep levels, now, in just a few weeks, Ether is at the forefront of what could be a wonderful reversal in price while it trends powerfully back into positive territory.
Currently not even Bitcoin, with the highest-valued blockchain, has a positive market performance close to Ethereum. ETH has been exceeding BTC’s upwards-trend speed. Likewise, if you see the drops that the two platforms present at some hours due to regular volatility, one can see that the falls of Ether are significantly less severe. Notably, on January 4, BTC experienced one fall of 2.8%, while Ethereum only fell by 1%.
This only happened for a few hours. At the time of writing this article, at 23:45 GCT, both currencies are recovering and showing green numbers. On the one hand, Bitcoin shows a bit of strength with a positive percentage of 0.59%, while Ethereum is already 3.79% positive. When Bitcoin falls, Ethereum drops just one-third of it. When Bitcoin rises, Ethereum goes up three times higher. This seems to be the momentary trend. Of course, this does not necessarily mean it will continue but they are very important signals that guide us to estimate where the market may want to go.
A vital point that comes into play here is the Crypto-Psychology of the investors. One can speculate that these massive purchases and this upward trend is due to the fact that investors are betting on all the new technological development that is expected for Ethereum in 2019 and also for 2020. Investors with the greatest strength to invest long term could be buying early as they wouldn’t want to wait until the last minute leading up to the activation of the Constantinople Hard Fork or the various enhancements that Ethereum could be launching this year.
Even many experts in Technical Analysis seem to agree. They seem to share the interpretation that the figures in the graphs, both in the analysis by weeks and the analysis by hours, indicate that it is more likely and plausible that Ether could continue to rise in price – Note: five popular analysts were taken into account for this case.
It is important to understand that the fact that Ethereum is in a relatively very positive period does not eliminate the fact that the rest of the Crypto world is rather in a moment of tension. Bitcoin is under the $4,000 level while a substantial part of holders would like to see it back at its previous levels of at least $6,000. Equally, a majority of altcoins are still at a negative 80% away from their all time highs, or even lower.
Markets are still bearish so there is also fear that this could affect this momentum that Ethereum has at the moment. Even so, the negative effect has not yet been seen and Ethereum keeps giving surprises in the New Year. On December 24th, it told the world Merry Christmas with an impressive boost. Now it says Happy New Year with an even greater force reflected in the immense volume of trading and in the prices apparently of a solid bullish trend. One can definitely ascertain that the faithful believers of Ethereum celebrate these news.
What do you think about Ethereum’s comparable outperformance over the past few weeks?