The crypto market is growing up: the key “coins” are becoming less volatile, the volume of fluctuations of the entire market capitalization has noticeably dropped in recent weeks. For the 4th month it rarely exits $200-$300 billion range, as we go forward large fluctuations becomes fewer.
In recent past cryptocurrency trading volumes grew when prices fell. In particular, Ethereum experienced high demand when price declined to $170 in combination with impressive volumes.
Cryptocurrency was allowed to fall and was soon was picked up at the bottom. However, this trend of recent days should be considered with caution. Four weeks after correction the volumes were also declined, returning to average low levels over the summer period. It may be a signal that the demand from the investors is still limited to anomalously cheap assets, unlike belief in bright prospects, which should further push the growth rates.
You need to be careful with the $250 mark for ETH as it can be a new resistance point with the high sales pressure after it. It cannot be ruled out that the current situation may turn out to be nothing more than a pause before a new decline wave, where bulls will no longer buy the currency below $180, but allow it to go down looking for the new support. It is entirely possible that we will see two-digit levels where ETH/USD consolidated in May 2017.
Alexander Kuptsikevich, the FxPro analyst