Ether Hits Record Highs as Price Decouples From Bitcoin

The price of ether neared $20 on 14th June, approaching the milestone as it appeared to break out of its old trading patterns.

Jun 14, 2016 at 10:45 p.m. UTC
Updated Sep 11, 2021 at 12:19 p.m. UTC
CoinDesk - Unknown

Screen Shot 2016-06-14 at 6.42.53 PM

The price of ether, the native digital asset on the Ethereum blockchain, neared $20 for the first time ever on 14th June, approaching the milestone as it appeared to break out of its old trading patterns.

In recent weeks, market observers asserted that ether had been displaying a negative correlation with the older, more established digital currency bitcoin. However, the two currencies failed to exhibit this relationship during today’s session, as ether saw price growth that happened in spite of declines in the price of bitcoin.

Ether’s price fluctuations also notably took place amid generous trading volume, as 24-hour transaction activity reached $62.7m at one point during the day, coming close to the record daily high of $65.3m reached in March, CoinMarketCap figures reveal.

Ether surged to $18.95 during the session, reaching a new all-time high, data from leading Ethereum exchange Poloniex reveals. This daily peak, reached at 04:45 UTC, was roughly 10% higher than the session’s opening price of $17.25. Ether hit this level amid a 24-hour volume of $45.5m, according to CoinMarketCap data.

But, when ether reached its new high of $18.95, bitcoin was trading at $692.80, roughly 2% below the currency’s opening price of $705.62, figures provided by CoinDesk’s USD Bitcoin Price Index (BPI) reveal. Later in the session, bitcoin fell to a low of $661.60, a roughly 6% decline from the opening value.

If bitcoin and ether were displaying a negative correlation, the drop in the former should have caused a rise in the latter. However, when bitcoin hit its daily low, ether had fallen to $18.04, according to additional Poloniex figures.

As bitcoin has long been the dominant digital currency (it was the first public blockchain to operate at scale and gather a wide user base), traders continue to watch for signs ether is emerging as a viable alternative investment, one that moves based on different stresses and factors than bitcoin.

Today’s price movements should go a long way toward helping ether strike out on its own.

Charles L. Bovaird II is a financial writer and consultant with strong knowledge of securities markets and investing concepts.

Follow Charles Bovaird on Twitter here.

Chalkboard image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
2
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
3
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown