Share this article
Ether Hits Record Highs as Price Decouples From Bitcoin
The price of ether neared $20 on 14th June, approaching the milestone as it appeared to break out of its old trading patterns.
Updated Sep 11, 2021, 12:19 p.m. Published Jun 14, 2016, 10:45 p.m.
Make us preferred on Google
The price of ether, the native digital asset on the Ethereum blockchain, neared $20 for the first time ever on 14th June, approaching the milestone as it appeared to break out of its old trading patterns.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In recent weeks, market observers asserted that ether had been displaying a negative correlation with the older, more established digital currency bitcoin. However, the two currencies failed to exhibit this relationship during today’s session, as ether saw price growth that happened in spite of declines in the price of bitcoin.
Ether’s price fluctuations also notably took place amid generous trading volume, as 24-hour transaction activity reached $62.7m at one point during the day, coming close to the record daily high of $65.3m reached in March, CoinMarketCap figures reveal.
Ether surged to $18.95 during the session, reaching a new all-time high, data from leading Ethereum exchange Poloniex reveals. This daily peak, reached at 04:45 UTC, was roughly 10% higher than the session’s opening price of $17.25. Ether hit this level amid a 24-hour volume of $45.5m, according to CoinMarketCap data.
But, when ether reached its new high of $18.95, bitcoin was trading at $692.80, roughly 2% below the currency’s opening price of $705.62, figures provided by CoinDesk’s USD Bitcoin Price Index (BPI) reveal. Later in the session, bitcoin fell to a low of $661.60, a roughly 6% decline from the opening value.
If bitcoin and ether were displaying a negative correlation, the drop in the former should have caused a rise in the latter. However, when bitcoin hit its daily low, ether had fallen to $18.04, according to additional Poloniex figures.
As bitcoin has long been the dominant digital currency (it was the first public blockchain to operate at scale and gather a wide user base), traders continue to watch for signs ether is emerging as a viable alternative investment, one that moves based on different stresses and factors than bitcoin.
Today’s price movements should go a long way toward helping ether strike out on its own.
Charles L. Bovaird II is a financial writer and consultant with strong knowledge of securities markets and investing concepts.
Follow Charles Bovaird on Twitter here.
Chalkboard image via Shutterstock
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
HYPE token's 30% surge is a story of crypto-traditional market convergence, treasury firm says
HYPE has surged 30%, outperforming bitcoin, ether and the CoinDesk 20 index by a big margin.
What to know:
- Hyperliquid's HYPE token has surged more than 30% to $33, far outpacing bitcoin, ether and the broader crypto market, as trading activity on the platform accelerates.
- The token rally represents the merging of traditional assets with the crypto world, according to Hyperion DeFi, which is a HYPE treasury company.
- Originally a crypto perpetuals exchange, Hyperliquid has expanded into tokenized trading of equity indices, individual stocks, commodities and major fiat pairs via its HIP-3 upgrade.
Top Stories
