Review of the ETH Price this Week

Jun 29, 2016 at 16:42 // Price

On June 23rd the British people voted to leave the EU. Before the Brexit we have seen the loss of value of fixed cryptocurrencies including PTS and ETH. The driver of the price reduction was the US Dollar, that pulled everything else behind as well.

On the eve of the Brexit, EUR/USD exchange rates rose to 1.1347. While BTC/USD fell from $740 to $550, and BTC/ETH declined to ฿0,01538498 and USD/ETH declined to $11.0786. Immediately after the announcement of the first results of the referendum, when it became clear that Britain would leave the European Union, the market started to panic. The British pound fell to $1.35, and the Euro fell from $1.1424 to $1.0949. At the same time, prices for cryptocurrencies began to increase. The price of Bitcoin has increased by $100 to the level of $650, while the price of ETH jumped to $14.2762. But then cryptocurrencies began a gradual decline on 25 June 2016. BTC decreased to $615, ETH declined to $11.9933.

The dynamics of USD/ETH exchange rates in June 2016:

The dynamics of USD/ETH exchange rates in June 2016:

Today, the market continues to stay under pressure. The US Dollar may continue to strengthen its positions on the foreign exchange market. Positive statistics for the first quarter of US GDP and the index of consumer confidence, which in recent months have increased to a maximum value, were published. A straightening of the Dollar can support cryptocurrency, including BTC and ETH. In any case, ETH is a risky asset and is entirely dependent on the situation on the world financial market. 

In such circumstances, the BTC/ETH pair also need to expect price fluctuations.    

BTC/ETH exchange rates dynamics over the past 7 days:

BTC/ETH exchange rates dynamics over the past 7 days

Especially, such a price fluctuation can be seen on the chart for the last month.

Dynamics of BTC/ETH price fluctuation over the past 30 days:

Dynamics of BTC/ETH price fluctuation over the past 30 days

Bitcoin Blockchain is a fundamental basis of ETH as well all other cryptocurrencies. In moments of tension and crises, Bitcoin will decline against the US Dollar and other world currencies. And with respect to Bitcoin, all other cryptocurrency will drop, including ETH. Most of the players, in our view, consider ETH primarily as a investment tool that has the potential to increase significantly. What do you think? 

This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency.

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