It’s Not Just Bitcoin: Ethereum Could Also Rally This Year

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It’s Not Just Bitcoin: Ethereum Could Also Rally This Year

Cryptocurrency traders are feeling bullish in September, and their minds are not solely focused on Bitcoin. After more than three weeks of losing significant value, rival digital currency Ethereum surged by 25 percent over a 48-hour period in mid-September, prompting some analysts to forecast a solid recovery this year.

As of September 15, ETH was trading around $215 after having dipped below the $200 level for a few days. While not many traders or analysts expect Ethereum to recover back to its record-high price of $1,365, which was last seen in January 2018, there are strong and reasonable hopes that it could hit the $400 level later this year.

The Big Names of Crypto Coins

With the recent consensus opinion about the cryptocurrency market having touched a bottom in 2018, Bitcoin and Ethereum are being talked about as the leaders of the next cryptocurrency rally, which may have already started according to some analysts. It should be noted that the market cap of the overall market reached its lowest year-to-date level on September 13, and this may explain the Ethereum bounce, but traders should also keep in mind that a potential rally would look different this time around.

While Bitcoin is increasingly becoming a store of value and investment asset similar to gold, Ethereum is straddling the line between being a digital currency and leading technology. In terms of practical implementation, the Ethereum blockchain is an absolute global leader, but the Ether token itself has not achieved circulation.

The Future of Ethereum Investments

The reality of Ethereum in 2018 is that its blockchain supports most of the digital currencies currently on the market, but there aren’t many intentions of making Ether, which trades as ETH, a viable currency. If anything, ETH is becoming an investment option similar to Bitcoin, a cryptocurrency that has limited options for gaining circulation outside of the major exchanges.

A few days ago, the New York Department of Financial Services approved the use of Gemini Dollar, a digital currency that runs on the Ethereum blockchain. Gemini dollars are pegged to the value of the United States dollar, and they are intended to provide a digital option for currency holders who want to move funds around the world.

Something else to keep in mind about Ethereum is its presence in various applications pending before the Securities and Exchange Commission; these are applications for financial instruments such as exchange-traded funds and futures contracts that would attract more institutional investors to the world of digital currencies.

In the end, the aforementioned developments will certainly boost the profile of Ethereum this year, particularly at a time when the cryptocurrency is in a good position to go on rally mode.

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