The top Ethereum news story from this week is a pleasant departure from what we’ve seen over the last few weeks. The second-biggest cryptocurrency actually escaped limbo, broke free of the $300.00 level, and advanced 5.62% over seven days.
The Ethereum to USD exchange rate was near $309.34 at the time of writing.
ETH prices did reach much higher during the course of the night, but those gains were dampened by an exodus to fiat currency. The crypto market cap fell to $200.77 billion as a result of the sudden capital flight.
That said, a reverse-rotation is clearly in effect. Money is flowing out of Bitcoin and into altcoins; Bitcoin dominance is down from 63% to 57%.
What started the reverse-rotation, though?
On the surface, it appears the bubble was pierced by the now-abandoned SegWit2x upgrade. Investors had staked out positions for a coming fork if the upgrade did not receive popular support, but then it was all for naught.
The lead developers called it off, citing too much contention.
This move completely deflated expectations in BTC prices, but it has done wonders for ETH prices. ETH prices are positive for the week despite horrible news on the home front. After all, it was only two days ago that $150.0 million’s worth of ETH tokens was frozen.
Daily Ethereum Chart
If you have no idea what I’m talking about, type “Ethereum $150 million hack” into Google. You’ll see that a user accidentally froze $150.0 million’s worth of ETH tokens in a wallet designed by Ethereum’s second-biggest client: Parity Technologies.
Since this is the second time this year that Parity has lost customer money, we expected a minor panic in ETH prices. Luckily, the abandoning of the SegWit2X proposal drowned out that news.
The future of our Ethereum price forecast depends on whether or not ETH performs a hard fork to unfreeze the money. If so, then ETH is likely to survive over the long term. If not, there might be rough seas ahead.