Ethereum (ETH), the second largest cryptocurrency by market cap, hit its historic maximum last Tuesday (19). The digital asset has surpassed US $ 1,400, recording cumulative gains of more than 140% since its December 2020 low. Also known as ether, the cryptocurrency is fueled by the rise of bitcoin (BTC).
Over the span of 24 hours, the digital currency has risen around 16%, breaking the previous record and reaching $ 1,439, as indicated by the index. Coindesk. In January 2018, the cryptocurrency hit a very similar price point, following the historic maximums of bitcoin in December 2017.
Bitcoin drives the price of ether
The two ether price records for 2018 and 2021 come less than a month after bitcoin’s respective historic highs. The most obvious phenomenon is that the main cryptocurrency in the market attracts the attention of investors in digital assets.
In both cases, bitcoin broke records and then plummeted in the short term. Ethereum directly benefits from attention to the cryptocurrency market. As the second largest digital currency, investors are looking for an alternative that uses ether as a secondary option.
Different market scenarios
However, today’s scenario was not the same as that of December 2017. At the time, bitcoin was seen as a major speculative bubble that, after reaching $ 20,000, plummeted until it reached $ 7,000. la. The same goes for ether, which in January of the following year also reached near the maximum recorded yesterday, and then fell below $ 380 in the following months.
The 2021 market scenario is somewhat different. Bitcoin touched $ 42,000 in early January, the highest price ever recorded, then had the largest daily drop in history shortly thereafter and now continues to maintain the rate of general recovery. Even with volatility, the records point to major differences from the bubble of previous years. As long as cryptocurrencies are still strong, ether must be leveraged together.
Ethereum is down 15% after record
Similar to bitcoin’s behavior, after hitting a new price record, ether fell at the end of the day to a low of $ 1,236, corresponding to a 15% drop. Cryptocurrencies followed on Wednesday with a lot of volatility and at a rate of depreciation.