Ethereum News Update
In a new report from CNBC, a key billionaire predicts that ETH prices will hit $1,500 in the near future. This prediction is even more bullish than our own Ethereum price forecast, which shows the currency reaching $1,000 in 2018.
Predictably, the billionaire in question is Mark Novogratz, an ex-hedge fund manager for Fortress Investment Group that made billions on Wall Street. In the last year, he has emerged as Wall Street’s leading champion for cryptocurrencies.
At first, he put 10% of his wealth in cryptos. Then, he launched a hedge fund dedicated to trading cryptos. Now, he’s added more skin in the game by putting 20% to 30% of his wealth in cryptos.
“What’s different about these coins than other commodities … there is no supply response here,” Novogratz said. “So it’s a speculator’s dream in that as buying happens there’s no new supply response that comes up.
According to Novogratz, this supply constraint means that “every price move gets exaggerated.” (Source: “Bitcoin could ‘easily’ reach $40,000 by the end of 2018, hedge fund legend Novogratz says,” CNBC, November 27, 2017.)
If he’s right—he’s been right about a lot this year—then ETH prices are certainly in for a wild ride in 2018.
What’s Going on with Ethereum Prices?
Ethereum prices stumbled slightly on Tuesday morning, falling 2.58% against the U.S. dollar. This brought the Ethereum to USD exchange rate down to $468.52. At the same time, the Ethereum to Bitcoin rate fell 4.76% to 0.04744370 BTC.
Investors shouldn’t worry about this too much. ETH prices were on a rocket ride for more than a week, so it’s only natural to have a minor retracement.
Daily Ethereum Chart
How Active Are Investors on ETH?
Between Sunday and Monday, Ethereum trading volumes rose 16.6% to $1.396 billion. It then fell overnight to $1.291 billion (which explains the fall in ETH prices).
It seems unlikely that ETH volumes will reach the $2.0-billion mark they briefly crossed last week, but that doesn’t mean that Ethereum prices will stagnate. There is still a lot of unexplored upside left for this currency, as Mark Novogratz is constantly reminding us.
Where Are Investors Buying ETH Tokens?
Ethereum’s wide base of support makes it one of the most resilient cryptocurrencies on the market. No exchange accounts for more than 10% of total volume. Investors are buying ETH tokens on dozens of different exchanges.
Bitfinex led the pack, accounting for 9.62% of total volume, while OKEx and Bithumb came in second and third, respectively. They accounted for 9.50% and 8.26%.
We maintain our $1,000 Ethereum price forecast for 2018. That said, we may adjust our estimate upward if prices accelerate faster than expected.