Ethereum has long enjoyed the status of being the second biggest cryptocurrency of the world in terms of market capitalization as per CoinMarketCap, until it was recently taken over by XRP. But now, ETH has regained its 2nd position back and is rallying back up strongly in terms of its price.
Just a few days ago, ETH was down in the lows as it was floating below the $100 mark but now, at the time of writing, the asset is roaming around the mark of $151 as per www.coinmarketcap.com. This recent recovery shown by ETH has various investors taking a sigh of relief. The bear run has continued for so long and the image of cryptos has been marred largely in the eyes of the public owing to this. This recovery shown by ETH will put some ice on the mega fire spread around by the market crash.
At the start of 2018, ETH was floating above the mark of $1,000 and since then, the asset has dropped down significantly. Here is the recent graph showing the ascent of ETH from 15th December up till today.
The drop in the price of ETH also had various startups worried about their fundings. Various projects were seen laying off their employees in the hindsight of the bear run that has been continuing on for quite some time. We saw the leading development firm linked with Ethereum Classic, ETCDEV, shut down completely owing to the lack of fundings. In the hindsight of the bear run, the development studio linked to Ethereum, ConsenSys, also took the aspect of laying off employees into consideration in order to expand its runway. Startups which raised fundings for their platforms in ETH during the ICO boom are a bit worried right now regarding their finances. A lot of investors also lost a large amount of money. Amidst the chaos produced by the market crash, this recovery from the trenches that lie below the $100 mark will likely put some fresh air out in the ecosystem of ETH.
Although the asset is climbing up at the moment, nothing can be said for sure. Volatility has been linked to this market since its global eruption. One day the market is booming, the very next day, it is down in the dust. It remains to be seen whether ETH is able to carry on its upward climb or not. Only speculations can be made, and those too have proven to be false in the past a lot of times. Greens turn into reds in no time in the nascent world of cryptos. One has to tread carefully.