Trading in Ethereum suddenly picked up with the altcoin boom, ending the temporary slide.
Ethereum (ETH) showed it was here to stay, and escaped the trading scenario with lows predicted below $300. Now, ETH reached $500 again as all altcoins are climbing against Bitcoin.
Trading volumes for ETH in the past month have been low, but consistent. There have been temporary spikes, and there is no certainty the recovery would continue. But ETH is yet another altcoin booming suddenly from what was seen as a bear market poised to continue for months.
As ETH breaks price barriers anew from the recent dip, the price may see more dramatic jumps, based on emotion, or automatized bot orders. In the past, ETH has not stayed low for long. ETH continues to grow, with a net spike of more than 20% in the past 24 hours, to $510.36.
What is curious is that ETH grows on its own accord, in speculative trading against USDT positions. On Binance, the pairing with USDT is more active compared to BTC trading, and sees the ETH price at a slight premium. ETH trading on Binance takes up around 10% of volumes now, about half the volumes of BTC trading.
As altcoins and tokens are booming, the Ethereum project remains the most promising, due to the large ecosystem and the many ICOs. The Solidity language and the writing of smart contracts is becoming a more widespread capability, potentially boosting the influence of ETH in the coming years.
The only short-term risk for ETH is the relatively uncertain recovery, as prices are still quite far from challenging and overtaking their peak, and the return of the bull market is still not officially announced.
But the fast price recovery is yet another indicator that ETH has the potential to boost the interest of traders, instead of remaining a permanently low-priced utility coin for gas expenses.
Even ICOs selling their holdings are only having a temporary effect, as the market has more funds waiting on the sidelines. The recent spike in altcoin prices has decreased Bitcoin’s price dominance to 42.2%, while the weight of Ethereum and altcoins has grown. However, Ethereum trading volumes slid again to 10.45% of the entire market, while Tether trading accelerated go near peak levels above 14%.