After New Highs, Ethereum Returns to Rangebound Trading

The volatility in ether prices is subsiding after the market hit a series of all-time highs last week.

AccessTimeIconMar 20, 2017 at 10:10 p.m. UTC
Updated Sep 11, 2021 at 1:10 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Following a string of new all-time highs last week, the price of ether has returned to a tighter trading range to begin the week.

The price of ether, which powers the smart contract-based blockchain ethereum, reached an all-time high of $55.11 on 17th March, nearly 100% higher than its price of roughly $28 on 14th March, according to CoinMarketCap.

Yet, since then, its price has changed direction, falling more than 40% to $31.70 the following day and then rallying nearly 50% to $47 yesterday.

According to analysts, the boost has been largely driven by the growing fears that the bitcoin network could split into two separate blockchains, resulting in two different bitcoin tokens that would be independently traded.

"This is not really about ethereum, which has had little news recently," cryptocurrency fund manager Jacob Eliosoff told CoinDesk.

He added:

"It's all about the bitcoin train wreck, and the growing awareness among investors about ether as an alternative."

Eliosoff was not the only market observer to point to bitcoin’s challenges.

Vinny Lingham, an investor and entrepreneur, stated that "concern over a hard fork" in bitcoin is one factor that has led to an increase in ether prices.

Rush the exit

Yet, not everyone believes that ether is winning all of the funds exiting bitcoin's more bearish market.

Harry Yeh, managing partner of investment firm Binary Financial, noted that while ether may be winning funds from traders who would otherwise withdraw into fiat currencies, traders are taking this option as well.

"When bitcoin bounced, there was a lot more ether selling and bitcoin buying," Yeh noted.

Now, he said most money is exiting the crypto market to more traditional assets.

Martin Garcia, vice president of Genesis Trading, also emphasized that ether's lack of liquidity could have very easily fueled the digital currency's recent volatility.

He told CoinDesk that:

"You have very little liquidity so the price fluctuations tend be severe."

Crushed can image via Shutterstock


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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.