Recently the Ethereum performed a really rapid breakthrough. We have not seen for a long time such fluctuations on the cryptocurrency market. And it is completely justified that the constructing of hypotheses occurs on the background of this rising. These hypotheses from the fans side and from the side of the ETH opponents are attempting to explain the reasons for such rapid progress. The most common topics for discussion is the manipulation of the Ethereum price.
Does this jump of the rate caused by a typical scheme of pumps or dumps (i.e. an artificial pumping system, which causes an increase of the currency price)?
Undoubtedly, some of the elements of manipulation are present, but it is extremely important to emphasize that these are just elements. The overall picture is much deeper.
We are now seeing the emergence of a large number of new projects based on the Ethereum platform, all actions of this plan widely reported in the news resources of the corresponding profile. The more news, the more people know about this currency, and become interested in it, which, of course, leads to an increase of its rate. In fact, we see all the signs of a normal bubble. However, be aware: The Ether prospects are significant, though realized only in the long term. It is important to understand where a line of the expectations of the market members is and how it is different from real indicators.
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Trying to make an objective assessment a rate of currencies like Ether is equivalent to a shot in the dark. Nobody can give an exact answer on this question. Investors, traders, developers, and speculators are now betting on prospects of a system on which this cryptocurrency based. But it is unrealistic to define the limits of the real exchange rate.
How well the increase of the currency exchange rate for the Ethereum infrastructure? The answer cannot be an unambiguous: the rise of a price attracts new members, increasing the number of users, and this has a positive effect on the state of the system, but on the other hand, transaction costs are rising. Because a balance must be respected.
The fact that at this time, approximately 90% of all trading is going in a pair ETHXBT (the Bitcoin to the Ethereum) also shows the popularity.
A transition from one cryptocurrency to another will look like a wave. The most important thing for speculators is faster to get earnings, but for investors is to see prospects of the technology itself. Now the ETH is at a peak and in demand that can affect the decrease of the Bitcoin capitalization for short term, but it is difficult to predict what to expect in the future. Speculative operations do not continue for a long time and as a result, many traders can be among losers with many negative emotions.