Despite Bitcoin’s recent bull run over the past few days, altcoins are indeed suffering as investors flee prominent cryptos to purchase BTC.
In particular, Ethereum has been hit hard, with its price falling to just under $210 USD at the time of writing. Against Bitcoin, ETH is currently sitting at a solid 0.018 BTC, down from its year-to-date high of 0.041 BTC, achieved late last August. This drop in price against Bitcoin may be an indicator of future declines for the prominent altcoin.
The previous day was ripe with financial turmoil, with Ethereum correcting above the $210 USD resistance level. Simultaneously, Bitcoin hovered around $11,400, peaking above $11,500 but failing to capture enough momentum to move past.
The price of ETH also peaked above $216, but shortly fell below the mark and declined to $209.60, where it remains at the time of writing. If Ethereum is able to consistently maintain a price above the $216 resistance point, a recovery would certainly be probable; in the meantime, the psychological barrier will likely keep any substantial gains away for now.
It is important to note that the political climate experienced during Ethereum’s 0.041BTC high was comparably more calm, leaving investors more certain in the coin’s stability and comfortable in holding Ether.
Predictions and analyses aside, the current market bears considerable hostility towards altcoins as Binance temporarily halts US market activity and international relations continue to crumble. Other altcoins such as Zcash have other obstacles to overcome at this time.
While the future has in store for Ethereum is uncertain; however, the coin has a clear advantage over other currencies not only for its substantial size, but also its use for smaller altcoins as “gas” to verify transactions. The coin’s unique technologies ensure that it will stay relevant on the world stage, despite price fluctuations caused by external factors.