Seeming out of nowhere, Ethereum saw a sudden jump in volumes surpassing that of bitcoins. The levels were up for a while before there was a reversal bring it back down.
A lot couldn’t be analyzed the rise and drop were quick but there was a fair bit of news that could have caused this. This seems to have happened first time since May 2017 when it was considered a fortune reversal as ETH had touched USD 200 for the first time and the bull run had begun. So is it the same this time or is it some sought of notorious activity.
Ethereum volume rise sign of bulls returning
While the screenshot was captured, ETH volume had clipped forward bitcoin’s with a rise in price for sometime before tracing back to its levels. If we believe the technical analysis, the rise in volumes as per the textbook definition in simple terms means how strong the fight between optimists(bulls) and pessimists (bears) which is how many people are sure and buy and sell.
If a lot of people participate and see that the price climbs, it means that a lot of people being selling see that it’s a bad idea. So they stop selling and the price rises even more. Usually, high volume means many sellers are witnessing the rise and change their mind.
As Ethereum saw a rising volume with rising in prices it could be a sign that bulls are returning. This large change of hands for Ether tokens means there would be fresh buying and a consolidation base is being prepared before the big rise. Also as Bitcoin has seen a stellar uptick in past couple of weeks, and its prices seem to be a little blown up for short-term, the trader’s eyes are shifting back to Ethereum which hasn’t shown a really a great run as bitcoin’s.
This also implies that Ether is still fairly cheap compared to bitcoin and hence could be the next target of traders to take it higher.
Also, read: Ethereum Cofounder, Joseph Lubin, Convinced that India will Accept Cryptocurrency in Future
Is this rise a foul play
While the crypto community hopes that the rise in volumes would turn the prices for Ethereum as well, the immediate fizzle out of volumes also suggests that there could be a foul play. If the data is analyzed further it is just one exchange responsible, it is the USDT trading pair that is giving such huge volumes.
Following is the screenshot of exchange EXX which shows to have traded Ethereum of over US 12 billion of ETH/USDT in past 4 hours over 10x of Bitcoin which is fairly unusual.
There was news reported in a section of media which said the Chinese have invented a new method to make transactions free while not being quite free. They call it transaction mining, and as the name suggests, each transaction mines some token created from the exchange, like the EXX token, based on some formula.
The exchange’s tokens thus are formed because of the transaction, with those that make the transaction receive a sought of rebate of sorts in exchange tokens, making the trading on such exchanges pretty much free and perhaps more than free Thus they transact and transact, or better said trade and trade, get the tokens, then speculate on the price of the token, in a booming atmosphere of exchanges proliferation in Asia.
The only question that is left unanswered here is why Ethereum? Well maybe its currently facing problems of its own like the congestion and this sought of activity may not surface up as a foul play.
Is it a positive technical built up or is it a foul play that took Ether Volume up over BTC’s? Do let us know your views on the same.
The post Ethereum Volume See a Sudden Jump Surpassing Bitcoin appeared first on Coingape.
Written by Nilesh Maurya @ https://coingape.com/ethereum-volumes-see-a-sudden-jump-surpassing-bitcoin/ July 28, 2018 Nilesh Maurya