Although the second half of December and opening of January has been a reasonable period for most cryptocurrencies, Ethereum persists as one of the biggest winners during the period.
Having gained close to 90% since its bottom in mid-December, the price of ether is currently exchanging north of USD 150, up from USD 80 just two weeks ago. Following the price rally, the long-time number two cryptocurrency by market capitalization also succeeded to recover its spot on the crypto market capitalization ranking after being passed by Ripple’s XRP in November.
Beginning with the price, we have witnessed that ether has been among the cryptocurrencies that have collapsed the most in 2018. In general, assets that have declined sharply also tend to bounce sharply once good news comes out and the sentiment starts to change.
Indicators used by traders and technical analysts also confirm this, with for example the Relative Strength Index (RSI) being in “oversold” territory in mid-December with a reading of 26. A reading below 30 on the RSI is generally seen as an excellent buying opportunity for traders who follow this indicator.