Ether prices have been hovering above $40 per coin as of late, indicating significant support for that price, according to several analysts.
Since 22nd March, ether, the cryptocurrency powering the decentralized application platform ethereum, has traded above this particular level.
During this time, ether has risen past $50 more than once, reaching as much as $53.78 on 29th March, according to CoinMarketCap. So far this year, the cryptocurrency has increased in value fivefold – from roughly $10 to $50.
Amid this continued strength, Joe Lee, founder and CEO of bitcoin derivatives platform Magnr, told CoinDesk that $40 appears to be a price ethereum users are happy with.
Charles Hayter, founder and CEO of data service provider CryptoCompare, offered a similar sentiment, telling CoinDesk he believes there’s enough evidence now to deem it a “solid support level”.
Broad rally
The price of ether has been rising at a time when alternative assets have also been experiencing inflows. While bitcoin has drawn interest from traders for years, many have been diversifying by seeking out alternative cryptocurrencies investments.
In the last month, the total value of all cryptocurrencies has climbed more than 30% from $22.6bn to $29.5bn, according to CoinMarketCap. The market cap of bitcoin, in contrast, has increased roughly 20% from $16.3bn to $19.6bn.
Magnr’s Lee believes ether’s market cap has benefited from this overall movement.
“This is a sign of new money flowing into the space and a clear indicator that the new money is not staying in bitcoin, but heading straight for alternatives such as ethereum,” he said.
Ryan Rabaglia, head trader for Octagon Strategy, which recently began making OTC trades for ether, also spoke to the growing interest in ethereum.
He said:
“We have seen a great deal of liquidity pour into ether over the last few months and it’s definitely led to an aggressive uptick from a pricing perspective.”
US dollar image via Shutterstock. Ethereum price chart via CoinDesk
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.