Credit: iStock.com/gamegfx
Over the last few weeks, crypto prices looked like the Planet of the Apes, in that they climbed incredibly fast.
However, that (admittedly terrible) analogy came to an end on Thursday night when prices crashed. Almost every single currency of note was affected.
Bitcoin dropped 17% overnight, while Bitcoin Cash fell by an even wider margin, losing more than 30% of its market capitalization. Even IOTA and Cardano, two cryptos that experienced rapid growth in the last month, fell by double-digits.
Ethereum was no exception to this trend.
ETH prices depreciated 20.33% against the U.S. dollar. This brought the Ethereum to USD rate to a seven-day low of $693.58. There are two ways to look at this ETH price crash.
On one hand, prices are still double what they were in early November. On the other, Ethereum just lost one-fifth of its entire market cap. It depends on your perspective.
ETH also fell quicker than BTC, which hurt the Ethereum to Bitcoin rate to the tune of 3.49%.
Daily Ethereum Chart:
Trading Volumes and Exchanges
Investors have been swapping a ton of ETH. For example, more than $4.26 billion changed hands in the last 24 hours. And there were only two days in December when trading volumes fell below $1.0 billion.
Put another way, there are a few silver linings in today’s Ethereum news.
Another example is the distribution of Ethereum trades. No single exchange accounts for more than 10% of total volume. And that is a really good thing because it spreads cybersecurity and political risk more thinly, thus insulating demand for Ethereum.
Analyst Take:
Don’t let the crash freak you out. Yes, ETH prices collapsed, but this “two steps forward, one step back” routine is a standard move in cryptocurrencies. As such, we see no reason to alter our $1,500 Ethereum price forecast.
Also Read: Ethereum Price Prediction for 2018
Source: Price Confidential