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article imageEthereum makes remarkable recovery back well over $200

By Ken Hanly     Sep 16, 2018 in Technology
While ETH or ether the cryptcurrency of the ethereum blockchain network is trading mostly sideways today it has made a remarkable comeback from lows within the last few days.
The remarkable etherium (ETH) recovery
Early September was unkind to ethereum as a recent analysis put it: "In early September, less than two weeks ago, ETH was valued at around $300. Abruptly, on Sept. 5, ETH initiated steep fall from $300 to $211, falling by 29 percent within a 24-hour period. Until Sept. 6, the price of ETH was moving in tandem with Bitcoin and the rest of the cryptocurrency market. After a major sell-off on Sept. 5, ETH lost its momentum and continued to move towards the $200 support level."
Even though many investors expected ETH to continue downward after breaking the $200 support level, instead the price surged more than 33 percent in the past 4 days. On Thursday night alone the price surged 16 percent. Within 48 hours the price of ether went from $168 to $224.
Many think that extremely oversold conditions are in part responsible for the upswing in Ethereum. Alex Kruger, an economist and cryptocurrency researcher expects the upside rally of Ether to continue at least in the short term.
Kruger also sees the Ethereum gain related to bitcoin rallying, but his longer term view sees a possible further drop in the price of ETH and other cryptocoins: “Direction of ETHUSD depends on BTCUSD. If BTC breaks $6,400 next levels are $6,600 – $6,650 and $6,850. ETH would break up much harder. Temporarily. Then expect selloff to resume, BTC to break the year lows, hellfire among alts, and ETH weaker than competing tokens. That’s my view atm.”
Positive developments in the cryptocurrency area
A recent article claims that Citigroup, Morgan Stanley and Goldman Sachs are all committed to offering custody of cryptocurrencies and also futures based on cryptocurrencies. This could bring a large number of institutional investors into the market driving up the price of Ethereum and other cryptocoins.
BitGo has received approval to act as a cryptocoin custodian. Morgan Stanley also has plans to serve the crypto market.
The cryptocurrency market may remain in the relatively low price range of $200 to $250 billion range. Stability is needed after the market just experience the fourth steepest decline in its history so far.
Given that the market has demonstrated a solid corrective rally, a gradual increase in prices is more favorable to the mid-term growth of the market. Bitcoin, the largest cryptocoin, has been gradually increasing over the $6,000 support level. Ethereum, the second largest coin by capitalization, could follow this trend. Lately it is doing even better than bitcoin.
Present situation
Bitcoin has been trading in a very narrow range. Just after opening, the price was $223. At 04:15 UTC it had dropped back a bit to $211.The close was $220. It is now September 17th UTC with the high so far just being $224. Ethereum seems to be consolidating before it makes a move upwards, or perhaps downwards. The present price of ethereum can be found here.
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