Pattern emerges suggesting lower trading volumes followed by price dips.
- ETH price smashed in low volume trading
- Vinny Lingham tweets bullish on ETH
- ETH continues pattern of price drops with drops in trading volume
It is difficult to point out exactly what is the cause, but there is downwards pressure on the price of Ethereum (ETH). As sustained drops in 24-hour trading volume occur, strong runs on the price of ETH have been evident.
This week has been no different and by the looks of things has actually been more pronounced.
Vinny Lingham tweeted during the week with bearish sentiment on prospects of bitcoin relative to ETH. What the tweet is trying to convey is that ETH has more usefulness in terms of technology.
I believed Bitcoin was being engineered to be money at the time. As you may know, I’m not a big fan of the “Store of Value” narrative without rising levels of utility, which ETH now has. I think may have seen a decoupling of BTC to ETH this past week, in terms of neg correlation. https://t.co/XypZb3tvH0
— Vinny Lingham (@VinnyLingham) February 1, 2018
What this will mean for the price of ETH is uncertain.
ETH started the trading week comfortably above US$1,000 on Saturday 27 January 2018, before shooting up to the week’s hugh the next day reaching US$1,257.77, according to pricing information released by CoinMarketCap.
Over the midweek period ETH traded between US$1,040 and US$1,200. By Thursday it seemed as though ETH would close out the week having weathered an otherwise stormy cryptocurrency market sitting at US$ 1,161.35.
That was until a sustained downturn on Thursday afternoon turned into a huge run on the price of ETH during the early hours of Friday. Over the course of 24 hours ETH lost over 33% dropping like hot rocks to as low as US$769.19.
ETH has since recovered and is showing erratic and uncertain trade to close out the week at US$914.06, as at the time of writing.
Market cap has been riding the waves with the price of ETH starting out the week at US$103.08 billion and hitting a week-high shortly after at US$122.33 billion.
By midweek ETH market cap was hardly below the week’s early levels and by Thursday afternoon was in a commanding position trading roughly US$13 billion above the week’s start.
The prolonged downturn on the price of ETH was felt more strongly in terms of market cap losing US$38.24 billion in a little more than 24 hours.
Trading volume at the early stages of the week were recorded around US$3 billion and by Monday afternoon had grown vastly to US$5.5 billion. Midweek trading volume cooled slightly from that swelling to register between US$3.1 billion to US$4.6 billion.
As the full effects of the drop in ETH were being felt, the increased trading volume seems to have been enough to have stemmed even more significant losses. Reaching a week-high US$7.4 billion in 24-hour trading volume the ETH market seems to be on knife’s edge.