Ethereum Surges 33% Within 4 days, Will ETH will be able to sustain momentum?

ETH, the native cryptocurrency of the blockchain network Ethereum, has increased by more than 33% over the past 4 days, despite investors' expectations for ETH to continue its downward trend below the level of $ 200 support.

Since September 12, ETH's price has increased from $ 167 to $ 223, reaching a monthly peak at $ 227. Traders have attributed the increase in the value of ETH to oversold conditions demonstrated by the cryptographic market, as demonstrated by Williams Percent Range and a technical indicator shared by the billionaire investor Mike Novogratz.

This is the BGCI chart … I think we put yesterday low. retouched the highs of the end of last year and the point of acceleration that led to the great rally / bubble … the markets love to go over the breakout … we have retraced the whole bubble. #callingabottom pic.twitter.com/EasTBYgjSj

– Michael Novogratz (@novogratz) 13 September 2018

Factors behind the fall in ETH in September

In All & # 39; early September, less than two weeks ago, the ETH was rated at around $ 300. Abruptly, on September 5, ETH started a sharp fall from $ 300 to $ 211, falling from 29% in a 24-hour period.

Until September 6, the price of Eth was moving in tandem with Bitcoin and the rest of the cryptocurrency market. After a major sell-off on September 5, ETH lost its momentum and continued to move towards the support level of $ 200.

During that time, courts around the ETH reached a monthly high, less than a month after the BitMEX 50x-based ETHUSD swap became the most Ether / USD product liquid. While other traders began closing ETH on the major cryptocurrency exchanges such as BitMEX and Bitfinex, ETH struggled to start a corrective rally, declining further to the mid $ 100, which investors did not expect.

Within two weeks, ETH lost almost 50 percent of its value while Bitcoin recovered relatively quickly from its 15% decline and rebounded to $ 6,300. The poor performance of ETH compared to other large cryptocurrencies has probably led the market to show oversold conditions, pushing a corrective upside.

The downward trend of Eth at the beginning of September was intense and the second most important cryptocurrency on the market showed short-term price movements that could be compared with cryptocurrencies and small capitalization tokens of market

The lack of volume on ETH combined with the increasing volume of Tether (USDT) and other stablecoins led investors to cover the value of ETH against the US dollar, creating a domino effect through large exchanges. The price of Eth collapsed in early September due to unforeseen market behavior, rather than specific events and developments.

Major Variable: ICO

ETH showed resilience in the lower $ 200 region and successfully passed the $ 200 resistance level, allowing investors and traders to become more optimistic in the short-term future of the market.

Most investors have falsely identified the cause of the decline in Eth. Many analysts have stated that ETH collapsed in September and in recent months due to a sale of ETH initiated by ICO projects deployed on Ethereum .

However, Diar researchers found that Ethereum Projects based on still maintain more than $ 500 million in ETH and are on top of most of their ETH reserves that have not sold from & # 39; Ico.

Researchers wrote:

"While global financial data is not disclosed by many companies, the amounts they have in their original Ether treasures at the time of their ICO are public information, some of the most popular and expected projects. , most of which have yet to be launched, are sitting at treasures north of $ 500 million, excluding their cash and their token reserves. "

So, in the future, if ICOs start selling their Their ETH reserves on the cryptocurrency trade, ETH could be vulnerable to another big sell-off, similar to the trend it experienced at the beginning of September.