Ethereum Price Forecast – ETH Climbs 4% on Explosive Trading Volumes
It might be a little early to call this putt, but Ethereum prices are seemingly free of the $300.00 level. In fact, the market conditions look right for an ETH surge to $400.00.
After all, Bitcoin dominance continues to drop and trading volumes continue to explode.
In the last month alone, trading volumes have risen more than 170%. Not just for Ethereum, but for the industry as a whole. This tidal wave of liquidity made it easy for sellers to find buyers, which is why the cryptocurrency market cap soared to $206.05 billion.
But that’s only half the story…
Bitcoin’s dwindling market share is also a major piece of the puzzle.
BTC dominance—as the ratio is commonly referred to in crypto circles—fell sharply back to Earth after hitting a high of 63% at the start of November. It is now approximately 52.5%.
At the time of writing, the Ethereum to USD exchange rate is around $327.84. It advanced 3.38% in the last 24 hours, while the Ethereum to Bitcoin rate appreciated 4.33% to 0.05039260 BTC.
More specifically, Ethereum’s trading volumes are up 80% in a week, from $579.4 million to $1.04 billion. While that increase is not enough to get ETH to our long-term Ethereum price forecast, it might help the currency accelerate to $400.00.
All that’s needed is a catalyst—and the current tension between Bitcoin and Bitcoin Cash will do just fine. If investors cannot make up their mind about which version will come out on top, they can simply dump their funds into the second-biggest cryptocurrency.
Daily Ethereum Chart
Analyst Take:
Play it cool. As ETH swings up to $400.00, it will gather greater confidence among investors. And hopefully, the market will eventually price ETH on its technology, which is making inroads with enterprises all around the world. We continue to believe that fundamentals will drive the currency to our $1,000 Ethereum price forecast.
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