Ethereum Spikes 16% Overnight to $220, Crypto Market Hits $204 Billion
ETH, the native cryptocurrency of Ethereum, has surged by more than 16 percent overnight, rebounding $224.
Within 48 hours, the price of ETH surged from $168 to $224, by more than 33 percent. While ETH has retraced slightly to $215, the second most valuable cryptocurrency in the market has found a breathing room that may enable it to find momentum.
It is early in the corrective rally of ETH to definitively conclude that ETH has initiated an upside movement. But, investors in the market are optimistic as the valuation of the cryptocurrency market recovered beyond the $200 billion mark, to $204 billion.
According to Alex Kruger, an economist and cryptocurrency researcher who previously expressed his concerns regarding a potential decline in the value of cryptocurrencies subsequent to a solid corrective rally, the upside of ETH is expected to continue in the upcoming days.
“The $6,400 BTC breakout unleashed an impressive +13.5% ETH reversal (from $189 to $215). Expect upwards continuation,” he said, reaffirming his target shared on September 12, when ETH started to recover.
“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.”
Already, tokens like Nano, Tezos, Kyber Network, BAT, Tron, 0x, ICON, and Ontology have started to record decent gains against Bitcoin in the 5 to 20 percent range.
Generally, tokens have followed the short-term price trend of ETH over the past few months. As Ethereum begins to demonstrate some momentum on the upside and if the optimistic price trend of ETH can be maintained throughout the week, it is likely for tokens to see large gains against major cryptocurrencies.
The recovery of the market, which was undoubtedly triggered by strong oversold conditions, comes in a time in which some of the most positive developments in the cryptocurrency sector regarding the institutionalization and regulation of the market have emerged.
With Citigroup, Morgan Stanley, and Goldman Sachs committed to offer crypto custody and futures around cryptocurrencies, investors are expecting an influx of institutional investors in the market.
After BitGo received the approval to operate as crypto custodian and Morgan Stanley disclosed its plans to serve the crypto market, Barry Silbert, the founder and CEO of Digital Currency Group and $2 billion crypto fund Grayscale Investments, said:
“Who else is fired up?”
Market on Decent Trajectory
The cryptocurrency market will likely remain in the low price range, in the $200 billion to $250 billion region throughout the next few weeks. Stability is needed for a market that has experienced the fourth steepest decline in its history.
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 at least has been increasing gradually from the $6,000 support level and is now hovering at around $6,600.
Featured image from Shutterstock. Charts from TradingView.
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