Last Thursday, the daily trading volume of Ether hit a 12-month high, the highest mark since 15 September 2017, according to CoinDesk. The cryptocurrency recorded a 24-hour trading volume of 850,000 ETH while its weekly volume hit $2.9 million, the highest since mid-December last year.
The increase in trading volume could be a sign that investors purchased the cryptocurrency during the recent dip of below $200, surmised Sebastian and Omkar in an article on CoinDesk.
“The recovery from the 13-month low of $167 to levels above $200 looks sustainable. Further, the pick-up in trading volumes validates the bearish-to-bullish trend change signaled by the technical charts,” the article reads.
At the time of writing, the coin’s 24-hour trading volume stood at $1.4 billion while the price was $218.06.
According to the CoinDesk article, Ether’s improvement from lows below $170 could be a turn in the favour of bullish investors.
“Ether looks set to test the resistance at $250 (Aug. 14 low) in the near-term, albeit after a bout of consolidation. The bullish case would weaken if prices find acceptance below $200,” Sebastian and Omkar opined.
A Bottoming Cryptocurrency Market?
Meanwhile, the cryptocurrency market is bottoming out according to billionaire investor Mike Novogratz, an indication that the market is ready for a new mid-term rally. In addition, the bitcoin price appears to have stabilized at around $6,500, which is a good thing because an abrupt rise could spell doom for the entire market.
“It is important for major cryptocurrencies to properly bottom out and stabilize in the low price range before gradually increasing in value and volume,” CCN states. “If the volume of bitcoin declines below $3 billion and the rest of the market struggles to regain momentum, it is also possible that BTC remains in the $6,400 to $6,500 range.”
Currently, the bitcoin price stands at $6, 480.07 and potential investors still have a window to purchase the coin at the current low price before the expected rally in October begins.