Ethereum Price Forecast – ETH Surges 11% Against Bitcoin on Reverse Rotation

eth priceEthereum (ETH) surged almost immediately after hitting a one-month low yesterday, jumping 11% against Bitcoin (BTC) and eight percent against the U.S. dollar.

This movement might seem random to investors who trade stocks, but it is an ordinary feature of the cryptocurrency market. Money flows into Bitcoin when tensions run high, then flows back into “altcoins” when things calm down. That’s simply how things work in this corner of the investment world.

In fact, this dynamic is visible in the dispersion of cryptocurrency market shares.

For instance, Bitcoin’s market share soared as tensions ramped up last week. It reached 58.5% on Monday morning, which caused prices to fall for Ethereum, Litecoin (LTC), and Ripple (XRP).

At the time we wrote that article, investors were staking our positions over Bitcoin’s hard fork. The split yielded a new currency called Bitcoin Gold (BCG).

Amid the chaos of uncertainty, both bullish and bearish investors piled into BTC; the bullish because they believe BTC will thrive after its  fork and the bearish because they needed to own BTC in order to get the forked-tokens.

However, the release of new details regarding the fork has dissolved all mystery. We now know much more about Bitcoin Gold (we have a big explainer that will be published soon, so keep an eye out for that), which means that clarity and, in turn, stability is restored to the market.

This relative stability forced money back into altcoins. Unsurprisingly, Bitcoin’s market share dropped to 55.7% this morning as money flowed back into altcoins.

ETH was a beneficiary of this movement, with prices advancing 8.55% on Tuesday morning, landing the Ethereum to USD rate at $311.19 moving closer to our ETH price forecast. Also, as previously stated, prices advanced 11.53% against Bitcoin, driving the Ethereum to Bitcoin rate to 0.05459180 BTC.

Daily Ethereum Chart

ethereum price chart 24 October

Analyst Take:

Regardless of the Ethereum news of the day, or the direction of the price swing, we have maintained that ETH is headed to $400.00. I want to reiterate that Ethereum price forecast, with an added emphasis now that the Bitcoin fork is complete.

Also Read:

Bitcoin vs Ethereum: The Best Digital Currencies for 2017

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