Ethereum Price Rebounds from 14-Month Low; Long-Term Growth Still Intact, Says Co-Founder
Ethereum staged a large relief rally on Wednesday, as bargain hunters swept in to capitalize on extreme oversold conditions following a 35% weekly rout for the world’s second-largest cryptocurrency.
The ether price surged 13.6% to $294, clawing back more than half the losses it incurred since Monday. Total trade volumes were $1.9 billion, according to CoinMarketCap.
At current values, Ethereum has a total capitalization of $29.8 billion.
Momentum has returned to the ether trade, with the monthly relative strength index (RSI) improving to 67. Ethereum’s RSI plunged to single digits twice over the past eight days.
The broader cryptocurrency market improved to $208.4 billion on Wednesday, which is a reversal of nearly $20 billion from the recent swing low.
Long-Term Growth Trajectory Still Intact: Lubin
Ethereum co-founder Joseph Lubin isn’t concerned about the latest downtrend in cryptocurrency prices. In fact, he believes the market is in better health today now that speculative investments have died off and bubble conditions have eroded.
“We’ve seen six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening but when you look back they look like pimples on a chart,” Lubin, who currently serves as CEO of ConsenSys Inc., said during an interview with Bloomberg. “With each of these bubbles we have a tremendous surge of activity and that’s what we’re seeing right now.”
Lubin believes Ethereum will play a pivotal role in the future alongside hundreds of other blockchain networks. This view is shared by other industry leaders, such as Ethereum co-founder Vitalik Buterin and Ted Rogers of Xapo, who believe the vast majority of tokens will go to zero.
Arthur Hayes Rips Ethereum
BitMEX CEO Arthur Hayes launched a scathing criticism of Ethereum in a recent post on Crypto Trader Digest, where he attributed the cryptocurrency’s growth to the highly speculative ICO boom.
In Hayes’ view, Ethereum will soon go “from a 3-digit to a 2-digit shitcoin.”
In the crypto community, a ‘shitcoin’ is a pejorative term that describes an altcoin that has become worthless.
As Hacked reported on Tuesday, a large-scale cash-out of ICOs appears to have sparked the recent leg of the crypto market downturn. At its lowest point on Tuesday, the cryptocurrency market cap was valued around $189 billion. That’s a $220 billion reversal from three months ago.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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