Following a multi-month downtrend, the price of Ethereum is recovering from yearly lows due to a boost in trading volume in the past 24 hours. Since Wednesday, Ether prices are up 15 percent.
Ethereum Recovers Through Tether Trading Pair
In the past five days, Ethereum prices began to uptrend as total trading volume across the largest cryptocurrency exchanges nearly doubled from approximately $1 billion to $2.2 billion.
A large portion of the incoming trading volume came through transactions in the ETH/USDT trading pair–indicating that most ether purchases were made with Tether (USDT).
Over 40 percent of today’s trading action was made in Tether, while $350 million of trades came from fiat dollars.
On Wednesday, Ethereum hit a 14-month low of $170.58 and recovered nearly 15 percent in the hours following to a valuation of $208.53. Given its recent price action, it seems Ethereum may have found a bottom or support level of $170.
The ICO fervor of 2017 that funded several emerging projects in ERC20-compliant tokens, which are now being sold off at a rapid pace, could be a contributing factor to the increased selling pressure on Ethereum.
It’s evident that ether’s gradual decline this year has decreased sentiment around the second largest cryptocurrency and other popular altcoins. Whether prices will continue to recover toward previous highs is still unknown and traders are reminded to remain cautious and invest only what they can afford to lose.
Ethereum, currently ranked #2 by market cap, is up 14.18% over the past 24 hours. ETH has a market cap of $21.26B with a 24 hour volume of $2.25B.
Chart by CryptoCompare
Cover Photo by Bill Jllen on Unsplash
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