Ethereum has been closely tracking Bitcoin’s price action in recent times, which means that the past few months have been incredibly turbulent for the cryptocurrency. Concurrently with this turbulence, ETH has been failing to garner any heightened trading volume, which could offer some insight into the current trend.
It is important to note that Ethereum’s volume is up significantly from where it was earlier this year, but the lack of any momentum – in one direction or the other – may signal that a massive movement is imminent.
2019 Was a Volatile Year for Ethereum
At the time of writing, Ethereum is trading up marginally at its current price of $143, which is right around where it has been trading for the past several days.
Over a short time frame, ETH has been trading between a relatively wide range between $120 and $200, and this range has been tightening over the past several weeks.
While zooming out and looking at Ethereum’s one-year price action, it grows clear as to just how volatile 2019 has been for the crypto, with it starting the year off at $90 before catching Bitcoin’s upwards tailwinds that led ETH to surge as high as $350 in late-June.
Immediately after setting hitting these highs, the crypto began a multi-month downtrend that it is still caught within, which has led it to erase nearly all of the gains that were incurred throughout the early part of the year.
Analysts still believe that the crypto may see further losses during the last couple of weeks in 2019, with Galaxy, a popular cryptocurrency analyst on Twitter, telling his followers that a break below $140 could lead ETH as low as $110.
“$140 must hold or it’s heading to $110,” he said while pointing to the below chart.
$140 must hold or it's heading to $110.$ETH pic.twitter.com/6KQO2sMV4C
— Galaxy (@galaxyBTC) December 14, 2019
Here’s What ETH’s Volume May Say About Its Future
Ethereum’s volatility has been loosely tracking the price action seen throughout 2019, with all big upwards movements being driven by heightened trading volume. It is important to note that ETH’s trading volume has declined roughly 60% from its 2019 highs but is still up over 400% from where it started the year.
The fact that Ethereum’s trading volume is still up significantly from where it started the year – despite any massive price climb – may point to the possibility that buyers are accumulating the digital asset.
It may also signal that a massive movement is imminent, as periods of sideways trading – with regards to both price action and trading volume – are historically followed by trend-defining movements.
Featured image from Shutterstock.
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