Although Ethereum prices fell overnight, investors should not be downcast about today’s Ethereum news—it is actually quite positive.
For one thing, the civil war between Bitcoin and Bitcoin Cash is almost over. BCH dropped 14.88% during the last 24 hours, while BTC advanced to $7,477.17.
Put another way, the market is returning to sanity. This bodes well for Ethereum, considering that ETH only escaped the $300.00 level amid the chaos of Bitcoin’s internal strife. Now the price seems on track to reach $400.00 within the next two months.
How do we figure that?
Simple: Ethereum currently has a market cap of $31.68 billion, which means it needs to move to $38.31 billion in order for ETH to reach $400.00.
Daily Ethereum Chart
Assuming that Ethereum can keep its market share at 15%, that only implies a $44.2-billion increase in the total cryptocurrency market cap. To put that in perspective, the market cap increased $144.6 billion from September to November.
It’s very achievable. In fact, the odds are fairly strong that Ethereum prices will reach $400.00 before the start of 2018. So I wouldn’t pay too much attention to the overnight figure on ETH.
Yes, the Ethereum to USD exchange rate fell from $336.33 to $330.78—a decrease of 1.65%—but that doesn’t mean much. ETH is still positive for the week. Besides, the fall can also be explained by weak trading volumes.
Investors swapped $722.67 million’s worth of ETH tokens yesterday, much lower than they had for the rest of the week. This is somewhat concerning, but try to remember that it is one data point in a sea of information. It hardly constitutes a trend.
If Ethereum prices follow the path we expect, it won’t be long till they hit our official $1,000 Ethereum price forecast for 2018. However, we are first looking for bullish signals, such as the Ethereum price reaching $400.00.