The past 24 hours have been rather eventful for all cryptocurrencies. With Coinmarketcap no longer taken the Korean prices into account, all currencies are slowly losing momentum. In the case of the Ethereum price, things are still going according to plan. Thanks to some solid gains in both USD and BTC value, Ethereum now reclaims the second spot of cryptocurrencies ranked by market cap.
Ethereum Price is Doing Just Fine
It is evident the removal of Korean prices makes all cryptocurrencies look bad right now. While some coins still go up in value, it is evident most of them will go through a correction phase later today. This also has an effect on the Ethereum price, especially after the bull run last night. While the Ethereum price soared to $1,266 the momentum couldn’t be maintained for that long.Not entirely surprising, as everything is taking a hit right now.
To put this into perspective, the Ethereum price is going through a correction. Not because it was artificially pumped, but mainly because Bithumb has always been a big trading platform for this currency. Unfortunately, Korean exchanges value Ether at over $1,700, whereas the rest of the world still has to surpass $1,150. This discrepancy has now been rectified on Coinmarketcap, and the current price represents the actual value of ETH a lot better.
As a result, the Ethereum price chart shows a steep drop from $1,266 all the way down to $1,145. This drop isn’t actually there, though, as it just represents the actual value per ETH on the market right now. Even so, Ethereum still made a strong 10.48% gain over Bitcoin, which further confirms everything is just fine as far as the Ethereum price is concerned. By tomorrow, everyone will have forgotten about this brief adjustment.
The Ethereum trading volume of almost $7bn is something to behold as well. Although 5.5% of this volume comes from Bithumb, it’s only a drop in the bucket. Binance is the clear market leader in this regard, with over $605m in 24-hour volume. OKEx is the surprising second entrant, although they are $190m behind Binance. There are only two fiat currency markets in the top five, with one of the two not being weighed to determine the Ethereum price. An interesting scenario well worth keeping an eye on.
One thing to keep in mind is how the ETH/BTC trading pair will take the spotlight for the remainder of the day. How that will shake up the markets, remains to be determined, though. As Bitcoin is going through another rough patch – mainly because of the CMC adjustment – it will drag everything down with it as well. No one should be surprised to see the Ethereum price dip below $1,100 again today, but it will adjust in due time.
For the time being, traders need to exercise extreme caution. All markets are even more prone to volatility than ever before, by the look of things. The Ethereum price is still in a good place as we speak, but it will go through a bit of a rough patch until the world realizes where this price decline comes from. It’s not even an actual price decline, but more of an updated reflection of the actual market value of all cryptocurrencies. It’s a decision that will pay off in spades in the future.