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