Ethereum News Update
This week, Ethereum news headlines have been so overwhelmed by “CryptoKitties” that an important factor was overlooked: Namely, that ETH/BTC rates are trading at historic lows.
The last time ETH/BTC rates were this low was in March, when ETH prices were valued at approximately $35.00. At that time, the Ethereum to Bitcoin rate stood below 0.028.
It recently fell below that level, courtesy of soaring Bitcoin prices. Now, investors could swap into ETH at a fraction of the usual cost.
This trade can work out in two different scenarios.
- Bitcoin falls back to Earth. A retracement in BTC prices wouldn’t come as a shock, given that the currency has been on a wild ride lately. ETH would likely take some collateral damage from the fall, but it just needs to fall by a smaller margin for this trade to become profitable.
- Ethereum shoots to the moon. The same forces that propelled Bitcoin past $17,000—a futures contract on two major exchanges—could also happen for Ethereum. If it does, we could see ETH prices go parabolic, which would make this trade immensely profitable.
Of course, if Bitcoin prices continue to climb faster than Ethereum prices, this trade could go south. But the winds of history aren’t blowing in that direction. There is a normal bandwidth for the ETH/BTC ratio, and we are currently way outside it.
Daily Ethereum Chart:
What’s Happening with ETH Prices Right Now?
In the last 24 hours, ETH prices jumped 6.46% against the U.S. dollar. This brought the Ethereum to USD exchange rate to $448.30. And, at the same time, the Ethereum to Bitcoin rate rose 2.39% to 0.02909730 BTC.
We maintain a strongly bullish position on ETH, including that it will reach our $1,500 Ethereum price forecast sometime in 2018.
Also Read: Hold on to Ethereum for the Long Term