The digital currency market has displayed a corrective surge in the short term, recorded over the last 24 hours, subsequent to highly oversold conditions exhibited by dominant digital currencies, such as Ethereum.
Ether, the dedicated digital currency of the Ethereum blockchain platform, has seen an intense decline from the beginning of summer, displaying extremely poor performance against the world’s most dominant digital currency, Bitcoin.
Today, BTC has indicated resilient behavior in the mid-200 USD area, bouncing back to 188 US dollars with its 9% value increase. ETH recovery caused altocins’ value to surge as well, allowing such currencies as MANA, VET, WAN, AION, ICX and ZRX to add 10-20% gains.
Despite the fact that market displays corrections, similar behavior has been seen over the entire period of summer. The BTC currency has registered a small 2% price increase, reaching the 6,400 USD level over the last day. The remainder of the cryptomarket, which endured serious fluctuations over September, indicated strengthening upward movement.
Since early 2018, the digital currency market has entered the 200 billion US dollars area of market capitalization four times, and each time BTC displayed low price range stability, whereas other digital currencies as the likes of ETH, BCH, XRP and other digital currencies with small market capitalization had difficulties staying afloat.
Slow movement of BTC value, compared to the pace of price movement seen with other digital currencies on the market means that the latter has become exhausted in the low price area. Since both dominant digital currencies and altcoins have already gone through a lot of suffering against BTC, bears can no longer successfully push the digital currency market lower that its price range is at the moment.
According to some experts, direction of the ETH/USD trading pair depends directly on that of BTC/USD. Should the latter break out from the 6,400 USD, the next milestones will be the 6,600-6,650 and 6,850 USD levels. However, Ethereum, for some time, will go through a much harder break-up. Subsequently, the sell-off will continue, with Bitcoin continually breaking the year-lows, altcoins seeing hell, and Ethereum getting even weaker than other tokens in the competition.