Ethereum got off to a decent start on Monday but plunged heavily – as did Bitcoin and other top altcoins – following a market-wide crash on Tuesday. The slump triggered indirectly by El Salvador’s Bitcoin adoption news saw the token post double-digit losses, dipping from $3816 to below $3,200 in a matter of hours.
Short-term traders jumped ship amid the decline, sending a wave of selling pressure across the Ethereum market. Here are the talking points from the Ethereum market over the last few days.
ETH Fees Surge on Token Slump
Among other effects, the market slide pushed the daily average transaction fee on Ethereum to a multi-month high just short of $60 on Tuesday, according to bitinfocharts.
For context, the transaction fee remained below $40 throughout last month only surpassing the level at the beginning of September. Experts argue that the upswing in Ethereum transaction fees was a knock-on effect of the token price plunge. They contend that the dip pushed many traders to panic sell, which increased the request for transactions consequently pushing ETH fees higher.
SkyBridge’s Scaramucci backs Ether to rise
SkyBridge Capital founder Anthony Scaramucci set forth during a Wednesday interview on CNBC that Ethereum would potentially increase in value as it has great uses cases. The financier-cum-author argued that Ethereum’s clear utility would keep the token afloat. His comments came just a day after the sharp correction in the digital assets market.
Standard Chartered Bullish on Ether in the latest report
A new research team from UK’s Standard Chartered bank laid out projections on the price of Ether and Bitcoin in a report titled Ethereum Investor Guide. The analysts detailed that they ‘structurally’ valued Ethereum at $26K to $35K and predicted its price would touch $15,000 by Q2 next year. The industry’s second-largest crypto asset is currently changing hands at $3,438 – down 3% in the last 24 hours.
The team maintained their bullish stance on Ether, adding that its price will rally as Bitcoin rises. They forecasted the token to touch $35,000 contingent upon Bitcoin’s price getting close to $175,000. Geoff Kendrick, the bank’s head of emerging market currency research and crypto research, laid out some key differences that he believes define the two leading cryptocurrencies.
He noted that Bitcoin would stand out as the preferred store of value among crypto tokens. He also observed that it would eventually become the go-to crypto asset for settling payments, but it won’t have a financial market role beyond that. In his opinion, that’s where Ether will shine thanks to its “much wider set of use cases.”
Kendrick, however, warned that regulations put Ether at a disadvantage as they could stunt its growth in the market.
“There’s clearly a risk to Ethereum that at some point, the SEC will view it as equivalent to equities. That would be inverted brackets negative.”
Ethereum performance in the market
Ethereum closed last week strongly, with its price touching a 3-month high of $4,022.47 on Friday evening as per coinmarketcap data. The token then retracted to the 3,800 – 3,900 range, which bulls successfully defended until Tuesday morning.
A broad market collapse on Tuesday pummeled ETH price. Ethereum fell to a 7-day low of $3,062.22, losing almost 1,000 points from its Friday peak. The token managed to hold steady, bouncing above $3,450 after the staggering loss. ETH bulls have since tried to work a way out of this level, but the resistance at $3,590 has proved too strong so far.
As things stand, a move above this point could ignite an upswing towards the next resistance above $3,600. If it fails to pick itself up and gets rejected at $3,590, it might tumble with immediate support at around $3,400. That said, it might be a good idea to set some funds close by should it dip further or manage a breakout.