At yesterday’s close, Ethereum’s price increased 16% over the past seven days compared to Bitcoin’s modest 3% gain. This is the biggest margin it’s had on Bitcoin since May 4th 2018. ETH is up 45% since the low of September 12th.
The signs are that this is just the beginning, here’s why:
ETH’s dominance is still low
ETH’s dominance of 10.5% is low compared to 12-month historical averages. The last time it was this low was in December 2017. The long-term average has been in the 15-20% range, which suggests even without a wider crypto-bull run, ETH’s price should be in the $300-$400 range.
Institutional investors are coming
Have no doubt, where there’s money to be made the banks will come. However, no bank will risk fines for trading in unregulated markets so they are playing the waiting game.
Earlier this week, the regulators kicked the ETF decision into the long grass again, but they can’t delay forever, especially while monetary authorities are asking for the regulation.
Crypto is undervalued
During a week when Danske Bank allegedly laundered $234 billion, it’s incredible to think that this amounts to more than the entire market capitalisation of cryptocurrencies. But crypto is only getting started. Nobody should underestimate the innovation that’s coming from the ICO space. Blockchain is such a disruptive technology for reducing cost, increasing transparency and transferring value. It’s only a matter of time before the value is realised.